I don't know if it's much of an alarmist article. It's saying that there are loads of people out there with an idea for a book.
That's jim-dandy. I know some idiot women at my day job with ideas for books (of course I know: every time I write while I'm there, they have to tell me their stupid ideas). I know countless dozens of teenagers who spend their time having angst and writing really crappy angsty poetry (it's a vogue teenager thing to do, it drives me nuts). If I pick up a rock and throw it, I would whack somebody who's writing some garbage fanfiction somewhere (ah, for the golden days of fanfic, now sadly gone and inbred).
I bet I'd have to chuck a lot of rocks before I hit the next Stephen King, John Grisham, or hell, even the next me. Or the next you. I think my arm would get tired first.
So, I'm not worried.
Well, I am....but the bit I'm worried about is, that's a serious lot of very silly people to warn about scam publishers, scam agents, things like PA and Babs.