A generation of founders absorbed the wrong lesson from Google. Google made scalability look like the whole game, technically and as a business model, and an industry of founders and investors started optimizing for it from day one. Graham's 2013 essay was the counter-argument. The thing that kills most early companies is not that they cannot scale. It is that nobody is using the product, and the founders are polishing architecture for a load that does not exist.
The reframe is to stop treating "it doesn't scale" as a disqualifier. In the beginning, the unscalable thing is usually the only thing that works. You recruit users one at a time. You do their setup for them. You go physically stand where they are. None of that survives contact with a million users, and that is fine, because you do not have a million users. You have ten, and ten is the problem to solve right now.
The canonical example is Airbnb. The founders had an idea, no users, and a flywheel that would not turn. So they went door to door in New York and took professional photos of hosts' apartments themselves. Photography is not a scalable feature of a marketplace. It was the unscalable act that made the early listings good enough that the marketplace started to move.
Do Things That Don't Scale is not a license to avoid building a real company. It is a sequencing claim: the manual, embarrassing work comes first because it is the fastest way to learn whether you are making something people want. Automation is a reward you earn after the learning, not a substitute for it.