I agree with the point that usable gear doesn't have to be expensive. I spent a number of years using "budget" gear, and it worked perfectly fine. (Think: Poly tarp, coated nylon rain suit, coffee-can pot and stove, and American Camper pack.) Clothing is probably the best place to save money. I was looking at the local Kohl's the other day, and found synthetic long-johns, 100% polyester Coolmax shirts and shorts, fleece mittens and stocking caps, both synthetic and and down-filled vests and jackets (the down seemed a bit questionable, since it had no fill power rating), and some wool/nylon blend hiking socks. None were "outdoor" brands, but they all looked pretty functional. I also found synthetic and down (ostensibly) vests and jackets.
What I object to in this particular article is that the author felt it necessary to justify using such gear by saying specialty shops are ripping you off with their high prices. Yes, good gear is higher priced, but several intangibles account for that: it lasts longer, it's often more comfortable (especially packs), and, most importantly, if you ask the clerk at Home Depot or Costco about features or how to use them, how to get in touch with a local hiking club, or where a good place to hike is, you'll get a blank stare ("Aisle 11?") Those stores are great at what they do, but there are also reasons to patronize the specialty shops - which usually carry various price-points of gear.
Overall, a good article. The case for using low-cost gear, especially clothing, for 3-season backpacking stands on its own; there was no need to trash outdoor retailers to prove the point.