Your article is spot on. I worked at AVOS for a year.
Chad and Steve are either complete morons or simply don't care. They've already made their cash, and now they are just playing around.
The company staff turnover is huge because Steve is a bipolar buffoon who is your best friend one day and then fires you the next.
AVOS is a real shame - not just because it's a gigantic waste of money - we had some talented people and ideas, but we could never get anything done. It'd be canceled, railroaded, micromanaged, or destroyed by Steve. Chad never has any solid ideas, rather lots of aloof and silly abstract concepts which he can't communicate in terms more specific than generic PR rubbish.
Either way, it was an interesting experience. I learned a lot (not from them, from other staff members - I learnt what not to do from them), but I'm 100% sure now they simply got lucky with YouTube. Right place, right time. They have no skill whatsoever.