1. There are no industry corporations due to PvP and wardecs
2. You can't be a solo manufacturer because of entrenched markets and player experience
3. Industrial missions suck
I won't speak to point 3 for the same reasons Kirith gives, I don't know anything about those missions. The other two I have some recent experience with.
As I mentioned, I have a couple alts that I use to do various activities like mining and now industry. They are very independent of my main. When I recently started doing industry, I had a nest egg of 300M ISK that I used to start. I don't feel that is an outrageous sum for any player to accumulate in a reasonable period of time. It's roughly 15 hours of mining ice or even a couple nice drops running green combat anomalies in high-sec.
Let's start with Point 1. Wardecs and PvP
I completely agree. Running an industrial corporation invites wardecs. Running ANY high-sec corporation invites wardecs. It is one of the many reasons that I have long standing issues with the entire wardec system. It actively discourages PvE focused corporations, limiting what could be an interesting career and social option for players in a game where social interaction is often key. Instead, people come quickly to the same realization that Eric did that you either do industry on your own, or it is done under the guise of other organizations and are not advertised strictly as industrial. Is this good? Probably not, but it is not what I would call "broken". Kirith makes excellent points as well in how industrial operations put assets at risk and does not offer much in the way of advantages that cannot be achieved through other means (contracts, direct markets, etc).
Point 2, however, is where I think Eric missed his opportunity and where I think Kirith makes things a little more dire then they actually are and his suggestions for moving to less traveled markets actually does a bit of a disservice to players.
T1 vs T2 manufacturing
Tech 1 manufacturing relies heavily on researched BPOs. The benefits you get from the various ME (material efficiency) levels vary by product and by how large your operation is. The more researched and the more activity you do (runs), the more the ME research will benefit your operation resulting in lower cost items. This then has benefits both to players who have had the time to invest in research and those who have larger bankrolls to do larger runs to take advantage of the material reductions. While ME research is time consuming, and in the case of larger items like ships, expensive, it is not a complete barrier to entry for players. On some items, there is a break point where additional ME has a serious level of diminishing returns to the point that is almost unnecessary for normal operations. An important point to remember here is that there are also two other material forces at work:
1. Players who view materials they acquire themselves as "free"
2. Players who use the markets to price their items with "trade profit" built in
The first group of players here are the most dangerous to the manufacturing markets. These are people who will drastically undercut other prices because they believe that materials they did not buy off the market have no value. Materials ALWAYS have their market value, regardless of how you got them. You cannot compete with these players on the market and if you are in a market where this is occurring, you are best to simply get out, IMO.
The second group are, in fact, more shrewd. A simple example of this is buying minerals in Jita and hauling them yourself to Amarr to use in production and sale of a product there. The difference in price between Amarr minerals and Jita minerals, while reflected in what you calculate as your cost to produce, is essentially "trade" profit. You could make the same by simply selling the minerals in Amarr and making your product with Amarr priced and selling it at a higher price. These players are taking advantage of the fact that other players will not make the effort. They also make some products look "unprofitable" to players who are not taking this cost reduction into account in their own calculations.
In the end, T1 manufacturing can be a very tight margin operation that often relies on larger scale and volume to produce larger profits. It is not where I would suggest young manufacturers to start.
Starting manufacturing with Tech 2
Tech 2 production is done entirely from T2 BPCs. Those BPCs are created through invention. Invention is a simple process of taking a T1 BPC, two Datacores, and an optional Decryptor and rolling the dice. The skills required to do this are easy to train. More skill means a higher percentage of success but so much that you are at a huge disadvantage if you don't train them immediately. An industrialist will have to do some work to properly calculate the cost of invention on a per item basis taking into account failures to invent, but it is not a hard thing to do and there are tools out there to help.
Where Tech 2 production really shines is that all BPCs produced by invention come out of the invention process the same, regardless of the T1 BPC used to create it. Researching a T1 BPO and making copies of that has no benefit to the T2 production process. The ME and TE are fixed numbers. They are only affected by the Decryptor, which is generally chosen because it results in the least cost per item after percentages. It is, in the end, just math. Every T2 producer ends up on equal ground after the invention cycle.
For a new manufacturer, this is huge. You may not have the scale to match the big boys in terms of items sold per day, but you are not at a Blueprint disadvantage like T1 production. You still have to account for material costs and factor in the above "trade" profit on those materials. On top of this, there are some VERY profitable T2 items both in terms of volume (lower cost, quick moving items) and in value (higher cost, slower moving).
My alts, using my limited starting cash, have been able to make significant profits selling some very common T2 items in major hubs. In some cases, I have even been able to build them at profit directly in the trade hub taking into account the higher job costs to avoid having to even haul materials around. At no time have I used a POS for manufacturing, which is point that Eric makes in his post of a reason that industry is out of reach.
I believe that Tech 2 (and in some cases T1) production is well within the reach of a novice player with a small bankroll and a little bit of time. You do not have to venture away from a trade hub to either market or produce your items and make a decent profit that will only accelerate as your wallet increases.