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Is full of bs. Were there no fansubbing and free distribution, I seriously doupt anime/manga would be as popular worldwide as it is today. Fansubbing if anything gives viewers change to sample what's worth buying and what's not.
I'll eat my mossy hat if fansubbing hasn't brought incredible (and free) advertisement for bloody many japanese products.
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With anime and manga having no real digital distribution model like music, I argue that fansubbing has indeed put a large dent in anime sales.
Why pay for what you can get for free? Those who watch fansubs and say "You know, I want to buy that on DVD" and then actually
follow through on that idea are in the minority, to say the least. I'm usually not in this minority.
The only thing that keeps me buying manga is that scanlations are usually incredibly poor quality and I'd much rather read a chapter or two of manga while laying in bed before sleeping than hunching over a computer, zooming in and out with CDisplay on each page.
Jam it back in, in the dark.