The "Gygax on cocaine" rumor was started at TSR by a certain individual, and was once spread to usenet by another who worked at TSR. It was the only time I saw Gary's lawyers threaten a libel suit against them. I don't want to identify the individuals who stated it, because one apologized and the other (which the other guy got it from) patching things up and resumed his friendship with Gary. I assume Mr. Ratcliffe got it from conversations at time, and he's not speaking from experience because he joined TSR 6 years after EGG left. (And I think it was just a cheap shot by the author--otherwise why even mention it now, it just seems like an ad hominem, he could have stuck with the second and third points without mentioning the first).
I agree he's well-knowledged, but I still have a problem with a few statements like this.
First, there's the simple fact that Tolkien's innovations are so great that they have, ironically, come to be considered "generic". In fact, they only appear that way because the genre of Modern Fantasy is something Tolkien himself largely created: he is the exemplar that defines the category. The very idea of a player character party—a group of diverse individuals of differing races with differing talents and specialties who set off on an adventure together—is a uniquely Tolkien innovation, unprecedented in earlier fantasy, where we either have a hero, or a hero & a sidekick.
Saying JRRT innovations are "so great" ignores the other great Fantasy authors, and you should also count Science Fiction among them, since the genres are tied at the hip. If we count pulps and comic books, the "differing races and different specialties" could have been found since the Golden Age of Science Fiction and a comic book team like the JLA or Fantastic Four.
I mean, some of his stuff is spot on. But as people would (rightly) accuse me of an EGG bias, so this author would likely see Tolkien as being more important than other influences.
And I agree with EGG's essays about how Middle Earth would be weaker for an RPG than other settings. As rich as JRRT created his world mythology, and as successful as ICE was with their license, as correctly stated above there are limits to what can be done with it, compared to those D&D campaign settings that have a lot more factions, countries, and plot hooks. JRRT wasn't trying to create a shared world or anything like that.