While I can certainly see your points, they dwell on worst case extremes to the exclusion of a reasonable middle. Proper management can mitigate the risks.

On a somewhat side note, I have a difficult time understanding why, in this forum, honest and objective questions are commonly met with extreme scenarios in answer, particularly worst-case extremes. This creates a culture of pessimism. Where is the "can-do" spirit? Where is the motivation to defy negative prospects and exceed expectations? Why the acceptance of defeat?