Yes, you hit all the key points on the head. Their claim of "making a living" doesn't fly with me. Maybe I don't understand, but I think it is them who are missing the picture. Per your point number one, they would be making more of a living and increasing that living over time if they re-invested at least half of their earnings into HP. They don't have to of course, but their excuse does not make financial sense for more than the shortest term.
!INDEED
RE: Power up or Power Off?