The one question that's not really answered there is, what if you can't afford not to work for said asshole? In these recession times, sometimes you may really not have a choice. "I just really need the money" is a valid statement in some circumstances.
The other things he mentions (like the bullet-proof contract, money in advance, and established deliverables) are a good way to protect yourself if you MUST work for an asshole.
In these recession times, or in any other times, it can be difficult to tell the difference between really not having a choice, and seeming to not have a choice because of the internalization of the same platitudes one hears repeated incessantly. Needing the money is a valid concern, but as I am reminded of almost constantly by those around me, don't confuse a legitimate need for the money with the social pressure of remaining at one's current lifestyle masquerading as a need. Image and social class are not the only thing worth being concerned about, especially if worrying about them doesn't get you closer to being happy.
Really, I think far more people work for assholes than honestly are trapped doing so.
Also, your second thought reminded me of this thread earlier yesterday: http://news.ycombinator.com/item?id=462338. The author's philosophy seems to be to assume the other person is an asshole, until they prove otherwise. This thread advocates what almost seems like the opposite viewpoint; that if one assumes everyone is a dishonest shyster, it is actually worse for business than not assuming so and just dealing with getting burned a few times.
"don't confuse a legitimate need for the money with the social pressure of remaining at one's current lifestyle masquerading as a need."
That's not only a problem in people that are self-employed, and it is a very big obstacle to people feeling happy. When it comes to 'need' it is surprising how few things you really need.
That sounds good in theoretical terms. Sounds just fine.
Live it, though, and you may change your mind. For instance, when that "lifestyle" you speak of means giving your child a decent upbringing in a reasonable neighborhood -- I'll work for an asshole to protect that, sorry.
Well, if you can't afford not to, you can't afford not to. Period.
The author is simply stating that of all of the variables you control in choosing clientele, making sure they aren't assholes should be near the top of the list. It's a better choice to take a lower-paying gig with a reasonable person than twice your rate with an impossible client.
The other things he mentions (like the bullet-proof contract, money in advance, and established deliverables) are a good way to protect yourself if you MUST work for an asshole.