He might have a point except the money is being spent poorly.

NOSTR development is laughably inefficient. If there wasn't so much money available, devs would actually have to cooperate and focus instead of building garbage on top of garbage on top of garbage, before scrapping that and building new garbage.

I don't think much of that money is dedicated to hosting regardless, though. I think most people hosting relay and media servers are just doing it out of pocket. It's probably not an overly expensive thing to do at NOSTR's size.