I haven't listened to the original podcast, but I can't really agree with Jim's hypothesis as you recount it.
First of all, the word renaissance means "re-birth," so tracking a "renaissance" all the way back to the beginning of the hobby doesn't make sense from a semantic point of view. I think the period he's describing as the renaissance is actually the early birth years, when everyone was trying to make the "next" D&D but no one had really succeeded.
Second, I think at least three factors that developed in the beginning of this decade more appropriately set the stage for a renaissance, at least in the business sense. Creative issues are somewhat more hoary and depend a lot more on anecdotes and personal preference, so I'm going to leave those aside for the moment.
Vampire the Masquerade certainly was a turning point in that it attracted a new audience and significantly expanded the demographics of the hobby. But a new game that managed to gain a lot of popularity was not unique at that time. FASA's Shadowrun had good market penetration, as did West End's Star Wars RPG. Vampire WAS unique in that it almost knocked AD&D off its pedestal as the #1 game, but that had a LOT to do with D&D being at the end of an edition cycle, and it didn't last all that long.
So, how did a talented amateur get his game into the industry in the years between, say, 1985 and 1999? Before that "talented amateurs" certainly could luck out, and indeed most of the early RPGs fall into this category. RPGs were brand new at the time, D&D was red hot, and games were being carried in hobby and toy stores. Around the middle of the 1980s, and especially after the initial boom of Second Edition AD&D core rulebook sales, it seems to me that most RPGs transitioned from toy and hobby stores to more or less exclusive availability at comic and game stores (where, of course, they had been all along). You might get into B. Dalton or Walden Books, if you were lucky, but those venues remained more or less reserved for the big boys.
I just don't see a lot of evidence of the "talented amateur" or "one-man show" companies prior to this decade, when a number of factors made it much easier for this type of product to exist. Here are a few of those factors, off the top of my head:
1) The advancement of desktop publishing software, print-on-demand technology, and overseas printing at rock-bottom prices finally made it possible for a one-man show to make a product that could look like a professional product without having to mortgage their house to do it.
2) The advent of the internet made it possible for one-man creators and micro-companies to market directly to the consumer. Later, the development and proliferation of PDFs made it possible for these types of producers to cut out both print and distribution costs, which again made the physical making and distribution of products a lot easier and WAY less expensive.
3) The development of the OGL and the d20 license, while in some senses stifling creativity by shackling everyone to the same system, none the less convinced many gamers to look beyond the D&D brand for the first time, and encouraged some non-D&D players to widen their own horizons. These events undoubtedly caused a "boom" that brought more "one-man shows" into the industry than at any time since the early 1980s. Game stores ordered deep on these products, a gambit that generally worked until WotC released 3.5 and essentially invalidated a lot of that inventory in the eyes of many gamers and consumers. THAT's when it all of a sudden became a lot more difficult for micro-companies to get distribution, because every channel in the distribution chain had been burned by the d20 Glut.
There are some challenges getting in the way of micro-companies getting their products into stores these days, but I do not think these challenges are unique to RPG companies. It's more difficult to get ANY books in bookstores these days. And thanks to online competition and increased overhead and the advent of products like collectible cards, board games, and miniatures that turn over MUCH faster than your average RPG product, the number of "full line" RPG specialty shops has decreased significantly since the days of Vampire the Masquerade. The stores just aren't stocking as many RPGs as they used to.
I think the renaissance was near the beginning of this decade, with the triple punch of the OGL/d20 License, the "Indy Game Revolution," and the birth of new, profitable distribution channels on the internet. The first factor was dealt a significant blow with the GSL, with the expected vast reduction in publishers serving that particular market. I'm not enough of an expert in indy games to say whether that market is growing or shrinking at this point, but I suspect it's at least held steady, and it has undoubtedly been a source of much important creative and game design and theoretical work.
The internet is still growing by leaps and bounds, and many micro-companies and one-man shows of the type Jim discussed in his podcast have been profitably (if modestly) thriving for a few years now.
The barrier to entry and the accessibility to the customer base has never been easier than it is right now, and it is getting easier every single day.
--Erik