I don't think that is the argument, or if so it's an odd one because it's just a fact right now. Instead, people are claiming that it will never be feasible from a purely physics standpoint, which is something debatable.
Saying it’s impossible isn’t debatable because it obviously is. What would stop you from a physics standpoint to just launch 100 ISS with Server racks in each? A few kW of installed power in space is already reality, it’s just really expensive.