The first point, as you suggested, is pretty questionable. As you pointed out, it's worth noting that the current wave of entrepreneurship has headquartered itself in California, New York, and Massachusetts, some of the highest tax areas in the country.
Boeing though just built a new facility in another state because of union issues (apparently).
Bottom line is that it's a part of the business decision, but not the only part and maybe not even the biggest part.
This is especially ironic (and painful) for Kansas since Boeing had been a major employer in the Wichita area for decades. It sold its Wichita Commercial Airplanes division to Spirit AeroSystems in the mid-2000s.
My understanding was that these benefits were what made this sort of thinking work.
The overwhelming note of the article was that even at the end of the day practical concerns did override idealism. Although KS has a long way to go and has some huge disadvantages when compared to other states with no income tax - there is a possibility that a zero income tax policy could help the state.
Businesses have to attract talent, and underfunding services and schools doesn't make for an attractive state. It is painful to watch how easily the people in charge slide into believing that one simple solution will fix everything. Even the best of ideas and intentions end badly when taken to an idealogical extreme.