Not saying that Paul Graham is or is not a ruthless capitalist who is trying to exploit people no matter what.
But I think Paul Graham is referring to the first thing in the context of this article.
I think, however, that PG's idea of "a project" as much as he says it should be "for fun" -- is actually just a segway (wormhole) into a start-up!
> One way to ensure autonomy is not to have a boss at all. There are two ways to do that: to be the boss yourself, and to work on projects outside of work. Though they're at opposite ends of the scale financially, startups and open source projects have a lot in common, including the fact that they're often run by skaters. And indeed, there's a wormhole from one end of the scale to the other: one of the best ways to discover startup ideas is to work on a project just for fun.
Not everyone wants to do this and being idle in that case is great as well.
I get extremely bored If I'm idle for too long.