I was also impressed and read the whole thing and got a lot of gaps filled in my history-of-the-web knowledge. And I also agree that the uncritical optimism is the weak point; the article seems put together like a just-so story about how things are bound to keep getting more and more wonderful.

But I don't agree that the system is bound to collapse. Rather, as I read the article, I got this mental image of the web of networked software+hardware as some kind of giant, evolving, self-modifying organism, and the creepy thing isn't the possibility of collapse, but that, as humans play with their individual lego bricks and exercise their limited abilities to coordinate, through this evolutionary process a very big "something" is taking shape that isn't a product of conscious human intention. It's not just about the potential for individual superhuman AIs, but about what emerges from the whole ball of mud as people work to make it more structured and interconnected.