I'm not sure about his claim that Silicon Valley is the only healthy VC market in the U.S. It's clearly the top dog, but Massachusetts and Texas seem to be doing pretty well. Money usually follows results, and according to CVCA data, of the states with 20 or more VC funds, 75% of them outperform Canada for returns. UK, Germany, and France are also shown significantly outperforming Canada. But, since "go get better results" (and do it retroactively) isn't a very helpful piece of advice for the Canadian VC industry, looking at new approaches is likely the best route to take. They can complement the traditional VC model, which isn't going to vanish but might have a different look a couple of years down the road.
Interesting comment on MaRS: "great building ... but the absolute wrong way to create an industry."