His* logic is unflawed. The only question: are his premises consistent with reality?
Let's take a look at a revised form of his argument.
In fact, we can construct a model of the energy in the Earth:
where E(t) is the amount of energy at a time t, E_0 is the total energy in the Earth at some reference point t=0, and P** is the Sun's power input into the system of the Earth (calculated by taking the solar irradiance and multiplying it by half the Earth's surface area -- approximately 1366 W/m^2 * 5.1e14 m^2 = 7.0e17 W). And keep in mind that most of the energy, in fact, is unusable: how are we to tap the heat directly at the Earth's core, for example?
So, in fact, there is a linear increase in the amount of energy available for human consumption, while the amount of energy humans will actually consume increases faster than exponentially, directly with the population, as the technology to extract that energy becomes available.
Malthus was right. If we do not expand beyond the Earth in the future, the reserve of consumable energy will be gone, and we will only be able to consume at less than the rate at which the Sun replenishes the Earth's supply of energy. Rate of consumption, going from increasing exponentially, will be forced to linearity. Since consumption itself is directly proportional to population size, we see that population will be constrained to follow a logistic curve along with consumption.
Mathematically, it will look something like this, I think:
where C is consumption of energy, r is the rate of consumption increase, and E is the amount of energy available in the Earth. If I'm right, the graph will look something like Figure 1 to the right.
[Note: I'm going to have to think a bit more about this part above. Something feels off.]
Malthus' prediction will have come true, regardless of the details of the math: the population will be constrained beneath a J-shaped growth curve (greater than exponential). Doom and gloom, etc.
Let's break down the usable energy sources in the Earth's system and see what sort of energy they provide our economies and lives, and what they correspond to in the equation E = E_0 + Pt.
What can we draw from this? Consumption of fossil fuels and uranium will follow a strict logistic curve, since there's a finite amount in the Earth and replenishment is actually negligible (actually, natural uranium decay indicates that the Earth's supply of uranium is actually decreasing, but even in the long run, that's negligible: the half-life of U-238 is on the order of tens of billions of years). Therefore, production, the derivative of consumption, will follow a bell-shaped curve: will increase, peak, and decline.
Our economy is based largely on fossil fuels. Our society is based largely on fossil fuels. Therefore, our economic growth and growth as a society, which has been largely exponential until now, will falter and follow Malthus' model for a period of time as fossil fuels peak and run out and we accomplish the transition to nuclear power, which is the only long-term sustainable alternative. In fact, because the US economy is a net importer of energy -- some 25% of our energy is imported*** -- the shock will be especially great: exporters will cut exports over a short period of time relative to the amount of time needed to absorb the shortages to deal with internal energy shortages. Because energy is so inelastic, price increases will simply be absorbed by the economy, causing damage. Therefore, demand will only cut back substantially when physical shortages occur. We can predict that the shocks will destroy our economy completely.
This application is analogous to the long-, long-run situation with respect to the rest of the non-renewable energy locked up in the Earth. We will need this energy to jump from the Earth and colonize the Solar System. If we can get our hands on fusion power, there is enough in the gas giants and Sun to sustain us for billions of years. If we can use that energy to launch us on to the rest of the stars, we'll have an entire galaxy to conquer, an entire galaxy's worth of energy to use. Once we do that, and especially if we can spread to other galaxies, I imagine that the closest thing we'll have to worry about as a species is proton decay or the heat death of the universe. See Figure 2 below for an illustration.
In the long run, we're all dead, but the human race isn't unless we let it.
* Do you not know who Thomas Malthus was? Well, you should; go look him up. ** P is not strictly input from the Sun; part of it also comes from work done by tides from the Sun and Moon, chiefly (other planets contribute, but negligibly: tidal forces decrease with the cube of distance). It is, regardless, constant, so linearity still stands. Interesting fact: the geothermal activity of Jupiter's moon Io, the most volcanically active body in the Solar System, is caused chiefly by Jupiter's tides.
*** Check out this website. Very informative.