He does have a point. At the start of the season, the majority of teams have no shot. Unless you are a celtics or lakers fan, you team doesn't have a winning tradition aside from blips associated with individual player's careers. The NBA actually makes baseball look like a league based on parity and that's hard to do
There are reasons for contraction, but LeBron's reasons are not valid. He basically wants 10 super-teams in the league. The point of sports teams are that they're for the fans... not to mention that super teams are usually cyclical. A team like the Pistons that was dominant in the 80s is pretty miserable right now. Bad teams will become good teams - that's the way this works. Pro sports aren't capitalist, and they're not meant to be.