On the unification of home consoles - something like this has been discussed before, and I wouldn't say it's impossible, but I don't see it happening in the near future.
When he gets in to how it could happen in the near future...well, there are a lot of assumptions that don't seem to give much credit to how well things have been going for Nintendo lately: a three-way split would suck, but all signs say Nintendo is going to take much more than a third; people have said "why doesn't Nintendo just make software?" and the answer is, "IT PRINTS MONEY"; companies pay millions for exclusives, but Nintendo hasn't had to do that this generation. Long story short, Nintendo makes a crapload of money on liscencing fees and on the hardware itself, which it wouldn't be making if it agreed to a unified console.
And on the Sony and Microsoft side of the equation, the companies really want to control the living room. Dyack at least makes a good argument that controlling the living room isn't worth all the money and strife they've gone through, but I'm not sure that either company is willing to give up that dream just yet.
So I think his scenario for a unified system - where the existing hardware makers have decided its just not worth it anymore - is believable, but it's not going to happen this generation, not at all. It will have to happen in a generation where Nintendo is significantly weakened.