I was also puzzled to read that assertion that unpublished writers are better off querying publishers directly, since they'll never get a decent agent. It just doesn't fit with what I've read and heard--or with my own experience, though mine does relate more to nonfiction/memoir.
I am puzzled by that as well Susan, I too have a memoir I am trying to interest someone in. Though I might start querying publishers if I exhaust all the agents who handle memoirs. It seems that I will hit the bottom of that list soon, same problem as I have with my kids' stories. I am running out of agents to query.
Two of us in my nonfiction critique group, both unpublished, signed with reputable NY agents in the last year. (The other person went on to a deal with Random House, and his book comes out this year. My agent has just recently started sending mine out; no takers so far.) Certainly, it is an uphill climb, but it can happen.
I followed an initial query strategy suggested by a writing mentor: send out few queries to agents, and a few directly to publishers (in my case, university presses.) The response can give you an idea of whether your book appears commercially viable enough to attract an agent. By keeping the numbers small, you can learn from the response, and make adjustments accordingly. (But you can read more about this elsewhere.)
Good luck!