What you gave is the argument that everything is fine, for those in the upper-echelons who choose a good broker. For the middle and lower middle classes, it's what they can do on their own, and the stock market is not where they should be playing with their often meager life savings.
No, I'm not saying things are fine. There are fundamentals to this economy that don't please me, but I don't think there are many good alternatives. My previous answer was my recommended approach for long-term investors in the market, whether they be middle-class or other. Dollar cost-averaging doesn't require a good broker...for mutual funds, it doesn't require any broker, only that one set up systematic deposits into the fund. You can do that online or through the mail. When markets are going up, you buy fewer shares; when markets are going down, you buy more shares for the same money.
Perhaps there will come a day when the interest rate environment is more friendly to "bank-savers," where you can invest in CD ladders and long-term deposits, but that environment hasn't been around in a long time.
It's my belief that it is essential for every financially responsible adult to understand a little bit about how the stock market works. Certainly, they should understand whatever they're invested in, be it stocks, bonds, or certificates of deposit at their bank.