In the White Paper , Satoshi assumed the mining market would stay open.
Error 1: ASICS closed the mining market to the rich elite only.
You don't have to be a "rich elite" to mine. You just need access to cheap electricity. Also, though it was not addressed in the whitepaper, Satoshi had predicted miner consolidation.
Error 2: Nodes processing transactions for free are in short supply, if any.
Of course this is due to the energy waste, making free transactions impracticable.
It was never assumed that transactions would be free. The whitepaper mentions fees as an integral part of the system.
Error 3: Transaction fees alone will not be able to maintain Bitcoin insane energy waste.
You are assuming that an "insane" level of energy consumption is required for security. It is not.
On the Instability of Bitcoin Without the Block Reward
I have read that paper. It makes some interesting points, but it is far from conclusive.