I was worried my comment would make it appear that I had not read the article - I did, I just didn't think that the author gave regulatory capture sufficient weight and/or made it appear that Schumpeter had written about or accounted for its importance.
As for its general inefficiency: the examples of Bell Labs & the Hollywood studios are good counterexamples, both were unstoppable and required direct government intervention.
One of Wu's points is of the different nature of telecommunications (and common carriers in general).
I am in 100% agreement with you on the last two points.
The book "The Master Switch" by Tim Wu which covers the history of telecommunications as a vehicle for looking at what might happen to the internet was my introduction to Schumpeter.
Highly recommended. Wu makes the point that Schumpeter gets it mostly right but did miss a few things, namely regulatory capture.
There was a talk at last year's Congress about the details of TLS 1.3 and many questions were asked at the end about 0-RTT. Was interesting to hear the cryptographer's, who work on the spec, opinions about that and things like why SNI is not encrypted by default.
Let's say your Python web application pickles your sessions so you can store more than just JSON serializable fields. Unpickling can result in the execution of arbitrary Python code and the only thing normally protecting you is that you MAC your session with the secret key (which was just cracked...)