Lose NIH Funding, Lose Lab?

Abel Pharmboy pointed to a piece in The Scientist entitled “Losing Your Lab” which discusses the plight of the soft-money researcher who has run out of funding. Actually, the plight of one researcher in particular. The commentary is, however, getting interesting and I thought many of our readers might want to go play.
There are a couple things in the article however that seem a bit off-kilter to me.