It's a battle cry. Schumpeterian creative destrucion; can't have one without the other.
Also embedded in pg's rhetoric is the social malignancy that is coming out of the dying Hollywood. That's why it should be priorities to be "killed".
And when we say "kill", we mean make more efficient. À la Schumpeter. The rent-seeking middle men will be eliminated; theoretically, the creatives will have more take on their contributions.
It's not okay to set off on an industry on a level playing field. But the MPAA and RIAA with SOPA/PIPA created a toxic playing field. I will still play by the rules. But in creating something that does their job better and thus destroying them, I will know I have helped society one more turn.