Yegor has direct and extensive responses to each of your points, and many more. Not that he is always correct, but he never avoids the questions you raise, and is happy to engage in discussions. Since he himself ran a development shop in Ukraine for many years, he is pulling back the curtain and sharing tips to stabilize a difficult process, especially for non-technical customers. He even has his money where his mouth is, with patents and a startup implementing many of the principles he lays out in a scalable system called Zerocracy[0].
And just as a counterpoint to your $10k customer needing to choose between things, there are hundreds and hundreds of customers who lose every penny of their $10k and start over from scratch. (That is what is in the podcast episode, if you have yet to listen.) By imposing the extra process and expense at the beginning, the customer can guarantee some forward progress toward their goal instead of trusting the dev shop to deliver everything by the end in a big bang delivery.
[0] https://www.zerocracy.com/