Removing all the insults and of course the reason behind his rant, he does make the perhaps good point that by indexing one buys very much into all the bubbles and "super-excitement" into some particular area (be it tech, housing, or whatever else will come) just by the fact that the inflated stocks are going to be over-capitalized w.r.t. the whole market, and this helps making the bubble even larger.
Of course buying into a "value" fund doesn't help, as there are high chances that fund managers are (a) closet indexers that are just payed more, (b) invested as well in the bubble (maybe even more than the index, in order to overperform for a few years, before the crash), (c) over/underperforming by chance, (d) explicitly underperforming to avoid a bubble because they're smart, but we won't know until too late ( :) ) (unless the strategy is "buy underperforming managers and cross fingers", which sounds risky), (e) investing according to their impressions and knowledge, which might happen to be wrong...
So well, there are problems, but not necessarily solutions. :)