Marco's statement is not an instance of "The 1% Fallacy". He's not suggesting that you can throw arbitrary products against the wall and succeed because 1% => 500k; he's saying "it's silly to try to cater to every customer because the math doesn't make sense".
Here here. March's point is also that if you piss off 99% of the potential market, you can still make a lot of money. He's addressing the 100% fallacy, the idea that you have to satisfy 100%. He's pointing out that that's not necessary
