Actually I think he's right, and there is a lot of supporting evidence going by the words of the guys like Zynga executives.
So called "social games" are designed to prey on the lowest human denominator. They are designed to hit an odd sweet spot of low quality and addictiveness for the target audience. What's more there are subtle design elements incorperated into them to get people to spend money as they play more, or simply to waste the "free" points people get through intentionally bad menu design. What's more as we've seen in case of kids racking up bills worth thousands of dollars, they also seem to be designed with intentionally bad security so children can "accidently" invest a ton of money without realizing what they are doing, or to simply exploit the stupid adults that make up the lowest human denominator.
It's kind of easy to be dismissive of morons when your smart enough to realize a problem, but honestly when I get past the elitism I don't think that there it's the fault of stupid people for being stupid, it's like discriminating against skin color on a lot of ways. There are limits to what you can do while maintaining freedom, but yeah... I think people DO need to be protected from their own stupidity, and this area is as out of control as various fine print/contract scams, or the gimmicks/deceptions that were being used to lure people into buying property they couldn't afford, causing a massive market crash. Heck, I'd even argue that in the USA at least our country is founded on the idea of protecting the stupid from themselves which is why we have inalienable rights that people can't sign away, even with a smarter elite pressuring them.
I'm in a place right now where I pretty much feel cash shops and social-gaming "virtual property" businesses should be pretty much banned entirely. I think it was a worthy experiment, but like the drug trade it's just too easy to exploit. I see it very much as being like those "foreign pay line" scams from decades ago run through the phone system. The very fact that Zynga has made billions off of things like "Farmville" is indicative of the problem and demonstrates exactly why such things should be banned. Especially when a company admits that they design their games to addict stupid people, that's just like using subliminal and hypnosis techniques in advertising which was also banned.