Bitt, you're assuming a perfect world. An ideal. And perhaps in such a world software patents could be made to work. But given that we're in a far from perfect world and we have had decade after decade of proof that the USPTO is flawed, his arguments are sound. The arguments made by others are relevant as well, but this is just simpler.
I don't believe a we can make a system that will work and add any benefits. Patents right now are filed on a daily basis by larger companies primarily as defense mechanisms. Just look at all the patent coverage for Apple in the blogs. Some of those are interesting ideas that one day Apple may do something with and others are interesting ideas that Apple may already decide they never want to touch, but that they believe competitors might. Competitors that may come after them on other fronts.