Right, there are definitely lots of very normal software projects going on. But it is worth noting that this is a new way that software is being managed and it will be up to some developers to work within it.
I don't agree with the article by the way, I don't see SaaS/cloud computing eating software at all levels.
Tell that to millions of small-medium businesses, if their needs can't be met by squarespace (and anything other than a brochure really can't) They reach out in their network for what could be looked at as a 'computer/internet handyman'. Will they get the highest quality solution? Maybe not... but they also don't have the budget for that.