Book packagers have been around for some time now. The only real difference here is that Frey and some big names are involved, and packagers are usually much lower key (e.g. genre fiction).
It appears that the author of the article is not a professional journalist, hasn't approached or worked with (or necessarily researched) other packagers, and almost certainly has a case of the sour persimmons.
E.g. book packagers normally pay a flat fee and no royalties to the nameless authors who work for them, whereas Full Fathom Five apparently offers little up front but 30-40% of everything. There isn't much discussion or comparison with the contracts offered by other book packagers.
That said, Frey has already demonstrated that he doesn't have much respect for his audience, colleagues or the concept of honesty. Anyone who signs on with him -- especially if FFF explicitly says they have no interest in negotiating the contract at all -- most likely gets what they deserve, both good and bad....
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