That's right idea PM needs it, but you need to start from something. It isn't easy to have all of those
characteristic from the beginning. It's all about learning and trying.
This approach is great - giving small things for free, but isn't working for every clients. It's horrible for you when your customer is't paying a lot (small projects, low prices etc.). They are overdemanding, don't like your work, put a lot of changes and thinking that you should't do it for free.
Paper is not going anywhere - people like it. Probably in the future it will be exclusive product. Niche is good. I like this kind of products. This idea reminds me about http://qqnotes.com/ (unfortunately it's only in polish).
It's about content not the title we are people not robots. We are making errors. For me that's great story about startup which is working on great product!