I think the word doesn't have a good analogue, so I support it. I wish it sounded a bit less sophomoric, but the concept is sound, because it's the intentional worsening of a product to extract more revenue, not just by charging more, but by being worse for the intended purpose.
I don't think degradation or decay capture this...those are more associated with a process in nature, or due to the laws of physics, but especially something unintentional (like "bit rot").
I like Cory Doctorow, so I might be a bit biased here. Would be interested in alternatives that capture the intentional aspect.
I don't know, I like that it somehow implies it is caused by humans. Decay is a natural process, sometimes unavoidable. Degredation is often used in the same sense. But human and organisational decisions are driving this.