The author argues that massively multiplayer games, by being dramatically more fun than real life pulls people from participating in the real world economy. Its pretty obvious that he's played world of warcraft and some version of everquest, though it seems like he's writing to a non-gaming audience.
He builds a fairly thorough case explaining why MMOs are significantly more enjoyable than reality. This leads to a problem for the physical world, in that if it wants to keep people buying stuff and producing goods, it'll have to adapt some aspects of game design.
He also tries his hand at seeing what the physical world would look like if our government policy makers setting up society like a game world.
Such as zero welfare, but instead full employment (through a bunch of easy to accomplish tasks (quests) that pay a living wage)