This doesn't make sense. We are already seeing the 130nm chips being too power hungry, of course it's only a matter of time before the 55nm chips use too much power as well.
You must have missed the part where I said "or if difficulty increases much, much more". Obviously there's a stopping point, it's just not in the near future. Plenty of profit to be made from moderately efficient chips in the mean time.
Electricity costs were not even remotely a concern to friedcat from the beginning. You can get contracts with local power companies and pay significantly less. It's already very cheap there. friedcat has also stated he does not intend to franchise outside of China.
Mind you, I'm not talking about power costs, I'm talking about finding locations with enough incoming power to actually run the miners.
friedcat seems to think they can bring on 1PH themselves not even including franchisers, so obviously they found something. When I was on the board I offered 2 MW/h to friedcat and he told me it wouldn't be worth it to ship, they had no problems finding their own sources of power. This was back in October of last year.