What you don't understand is that Lutz's products are just now coming out, and they're doing great, and the ones that aren't out look great (Lambdas).
Lucerne, Solstice, Sky, C6, Aura, T900s, HHR, Aveo.
This article was written a couple months after Lutz came on board, so you can put a whole lot of stock in it until you actually see all the Lutz products, and so far, they've been pretty damn good.
Now, were his comments totally off-base and wrong? Yes. But what do you want him to say? Would you rather that he say something negative like "I don't see much good in the products that will be coming out, but later on when I have full control over a program from start to finish they will be great"?
1) The economy doesn't have a whole lot to do with GM making strides. Sure, if it tanks, GM would be done, but so would a lot of companies. The economy has little to do with what GM is doing right or wrong, other than maybe making decesions about whether to put more affordable vehicles in the pipeline or to put some more expensive ones in the pipeline.
2) Gas prices are falling now, but even if they're $4/gallon, lots of people need trucks for work. I don't see gas prices effecting PU sales, but it could effect T900 SUV sales. Silveardo sales are down, but some of that has to be in anticipation of the T900 and some of it is because of the Employee pricing blowout.
3) This won't be any issue for another year, and even so I think that they'll be able to work out a good deal with the UAW, they've been able to deal with them so far. Plus, the UAW seems to have recognized that they have to change or die.
4) What new product hasn't been consistently good lately? The only "bad" products I can think of that have come out recently would be the STS, LaCrosse, Equinox/Torrent, and the Saab rebadges. None of them are really terrible products either, they just have something missing here or there that makes them uncompetitive in a certain area against their competition (STS would be mundane styling, LaCrosse would be platform + powertrain, Nox/Torrent would be engine/interior). And, all of those were still mostly done under the old GM, not under the new GM that has been churning out the competitive products.
5) I have no proof that they weren't spent, but it appears that you have no proof that they were. So, I think this is a moot point until someone can say for sure otherwise, but I'm pretty sure it was spent wisely; GM is very tight with its money nowadays.