That article is correct - if you skimp on tech as an options MMer, you are almost certainly history. Hedging is imperative, but once again you hint that it is non-trivial for path dependent portfolios.
I missed this selloff. I was a nose hair away from selling ~1080 SPX yesterday and decided that I was going to wait until later today. Oh well. As stated many times in this thread, there is a gap fill in the 1080s to about 1100 from the implosion a year ago that will eventually fill. The Chinese and Japanese are on the March to September quarterly cycle. This can cause currency moves as this period comes to an end, and it is probably at least partially historically responsible for many of the September selloffs. I think we see a small pop into the 1 CT hour and then probably continue lower. So probably see ~1055 SPX, and then lower again.
You'll likely never get to the finish... This is why: http://www.opradata.com/specs/traffic_projections_2010_2011.pdf The more time you spend working on the tool, the farther away the target moves. 4mm quotes/second by Jan 2011.