Some fantastic points here, everyone.

Glad to be part of such a community.
Unlike Onix, I think it's fine to proffer the question without knowing the answer or to outline a problem without having the solution.
I think Malcolm's article is very interesting not only for the points he makes but for the reaction to it. Are most RPGs creatively impoverished? Possibly. Is it the fault of the creators
and the consumers? As horrible as the thought is, I think it might just be true. Does it apply to us?
A confession.I don't like to play fantasy games; for years I've had to try and explain why. At a very subconscious level, I want to explore a philosophical idea that reflects on my own life when I play. I
feel that the tropes of fantasy are too deeply ingrained to do that well. The settings tend to be too familiar and resulting stories predictable. Endless reworking of European folk tales are the norm. I prefer Sci Fi (including Post-Apocalyptic - CA, when are you going to release Dead... And Back?) because you are less constrained by the tropes. Sci Fi doesn't have to have aliens. The apocalypse doesn't have to be nuclear. If someone would show me a truly different fantasy to "D&D"-esque Tolkein or Warhammer Tolkein-with-blood then I might change my mind. Given that most people play fantasy RPGs, I think Malcom's argument is justfied.
We're having fun!Although I agree that as long as your having fun, it doesn't matter - that only works for people inside the hobby. For anyone looking in from outside, the amount of choice isn't that great - especially for a genre that is based in the imagination. People outside are important, they're going to carry the hobby onwards. We were all outside once.
The original questionTo return to my original question, I do not feel the problems outlined by Malcolm apply to us as free RPG authors. We're not trying to use our free games to put food on the table (I know there are some pro authors on here, please don your free hat). The triumvate of Money, Time and Talent are interesting but don't apply in quite the same way. Cost can be very low as software is free and CC images can liven up your game; Talent is a difficult quality to measure and can only be identified when a game is produced*; Time is not as important as one might think as we as authors can chip away at a game until it is finished - no deadlines are imposed. We also have a more proactive community that want to help - commercial products need to pay for that service.
Although the problems Malcolm shows do not quite apply to us, we are affected by the hobby as a whole. If the commercial side goes to the wall, there will be a smaller player base for us. We are, after all, the fringe of the fringe.
* Although I'd also say that everyone has a superb game in them, if only they can get it out (CA, I'm looking at you right now).