I think people are pissed because if his business thrives, that means other businesses are going have to pay a much higher salary to keep people.
Wasn't there a thread earlier this year about businesses keeping IT wages low?
Honestly, paying above market wage CAN have the benefit of making retention of employees easier.
I have no problem with paying above market wages, it can be a viable economic strategy. (But only if one or few companies do it, otherwise the wages are no longer "above market.")
My problem is I'm pretty sure 70K is a bit too much "above market" for many of his employees for it to be viable long term, especially for entry level employees.
I have no fear whatsoever that this will pervade the market, unless enforced by government fiat. (Which would end up making $70K worth about $30K in today's dollars...)