He's wrong on the first two points.
1) Brand. Sure, PlayStation is the strongest brand in the industry. But "PlayStation" in consumers' minds means a game console they can actually afford. PS3 isn't going to be affordable anytime soon due to Blu-Ray, a technology people with SDTVs (i.e., most of them) won't benefit from. How much tech does Joe Sixpack actually want?
As we've seen, FOUR hundred dollars is too much for a games console. It's certainly the upper limit. After the holiday honeymoon, I think Sony's going to find that demand tapers off for its system pretty fast.
2) Microsoft squandered its lead. Did it? They've ramped up production so supply problems are history. They've amassed a solid software library that's about to get goosed by Gears of Awe. Devs are familiar with the system. And there's a pretty good installed base. Not to mention, Sony's unlikely to catch up A SINGLE CONSOLE this holiday season due to their own supply constraints. And Microsoft's in control of the price-drop situation this gen.
At the end of the day, it's price that's Sony's big problem. It may not kill them and it may not prevent them from winning, but it'll do some damage and we'll just have to see how much.
In the meantime, thanks to that price and the terrible shipment numbers they're likely to see this year, Sony's left a few doors of its own open for Microsoft and Nintendo to just stroll on in.