I love reading things like this where you stop and go "Huh, I think that is exactly correct." So the follow up to that thought is what is the fate of software? Specifically when people figured out that the value wasn't in having the factory, but in the final product + design, they outsourced all the factory work to where it was cheapest to get get done. I could see this becoming a huge business for a country with a relatively low cost of living but a large supply of very capable coders.
The most recent companies funded Y Combinator seem to exist in the intersection between code and domain expertise in law, medicine, finance or other advanced industries. It seems to be harder to make it work with a "pure code" startup.