I don't think he was illiterate, I think he glossed over a lot of things though.
The TI architecture was pretty complex and it wouldn't cost-reduce much. It required higher-cost components like static RAM, where Commodore used cheaper dynamic RAM. Another example of this was Atari trying to compete with the over-engineered Atari 400 and Atari 800... they would lose tons of money until the XL line was ready to sell.
The other problem was how idiotic the TI management was. The computer division would actually buy components at wholesale, (not cost) from their own chip division, so it would show that their chip division turned a profit.
Don't feel bad for TI though, they made plenty of bank selling chips to Coleco, Sega and the MSX crew.