Github is a bit special but I guess this can work every time you have a few basic ingredients: a product that has final customers (no busines-to-business), and a company that is completely focused in developing this single product.
It is not very common but also not rare either for web startups to have this kind of setup, so I think this may work for many... of course a fundamental thing here is that they hire smart guys, you can do something like that only if every piece of the company is skilled and independently able to handle his own work.
I think saying that GitHub is a special case is a copout. The real meaning of this presentation is that if you treat your employees well and let them do their job, they'll build great stuff.
Yes, not all companies will have the same success as GitHub with this approach, but I bet for most it would be a huge improvement over what they have now.
I don't necessarily think it is a copout. They are bootstrapped, are making a ton of money, and hit the market with a good product right off the bat. Not many companies can afford to do the things they do and still pull a profit. How many startups can afford and justify having an artist (not graphic artist mind you) permanently on staff? Don't get me wrong, I love github and they have a great team, but not every company can do the things they do and still be in business.
It is not very common but also not rare either for web startups to have this kind of setup, so I think this may work for many... of course a fundamental thing here is that they hire smart guys, you can do something like that only if every piece of the company is skilled and independently able to handle his own work.