When it comes to article marketing, it should never be your "be all end all" for SEO, it's as foolish as relying on any one other aspect of SEO exclusively, so I also agree with Spintax in that people should branch out and diversify their methods. Not only this, but they should divide their efforts evenly into the different types of SEO, making sure to focus more on the methods that are proven to give your site authority, like Social Media. Matt Cutt mentions the fact that article marketing with conventional methods creates junk and duplicate content - the exact opposite of what Google's engine strives for - and should therefore be common sense that it will have very low weight on your rankings. There are sites that are not directories that love to share high quality articles written on the site in question, however, so it should not be shunned altogether.
People should still write articles, just ones that have actual substance and are shared not for the sole purpose of gaining traffic, but to be an excellent resource on the topic at hand. This is what Google looks for. If it's rehashed content that can be found elsewhere, the engine will pick it up. If it is unique and original, it will have more weight on your rankings, that's the point of that Q&A.