I'm having a really hard time wading through all the bitterness to find the author's point... not to mention the absolutely fallacious math...
Firstly, a 290 page novel that sells for $4.99 does not earn $1.40 in KU2. You have to know the KENPC (which is a kindle normalised page) which is completely different (and much HIGHER) than the paperback page length. KU1 favoured shorts and saw an influx of short stories and serials as people took advantage of that format. Amazon addresses that with KU2, which favours longer novels. I earn as much for a full read as I do for a sale. The author of the article doesn't actually understand how KU2 works or how a page read is calculated.
Secondly, KU2 favours books that engage readers and make them turn the page. If the author of the article is not getting page reads then *yes* he has an issue. People are borrowing the book and obviously discarding it without finishing it. That speaks volumes. I had a quick browse of that author's Amazon page and the article reeks of sour grapes. His rankings are in the millions, what few reviews he has, are not good. I doubt he's making $100/month. Maybe if he improved his craft, wrote books people wanted to read, and actually produced a professional product (those covers! oy!) he might sell a few more books.
If you want a better view of self publishing, I would suggest you read this interview with Hugh Howey
http://www.digitalbookworld.com/2016/dbw-interview-with-hugh-howey-author/