I'm skeptical of many of these kind of pieces because they so often seem themed around "China is working - but it goes against my personal economic ideology, so it can't really be working." That said, a lot of the stuff mentioned is obviously true - the construction bubble, the lack of information*, bureaucracy, corruption, the lack of real income growth for many people, etc.
So, I am not an economist, obviously**, but personally, my guess is that a crash at some point is inevitable. James Fallows has made the claim before that the Chinese public can manage a recession because they went through so much worse in the past, but I'm highly dubious of this. For starters, the really bad times are over 30 years gone; most Chinese, and especially most young Chinese, have no more idea of them than, say, young people in the 1970s in the UK did of the Second World War. 30 years of continuous growth, and a decade plus of super-growth, makes it hard to cope with the idea of recession.
The underlying problem is that the legitimacy of the Chinese regime rests upon two foundations nowadays; continued economic success and national unity. The second isn't threatened in any significant way, the first is going to be a problem at some point. Economic woes played a major parti n both the cultural revolution and 1989. The big danger, I reckon, is that if things did turn sour here and the public turned truly angry, the government would be forced to beat the nationalist drum extremely hard - Taiwan is the biggest and most obvious issue to get nasty on to bring the people together, but there are others.
So this means that the government is also keen to put off a recession by any means necessary, which means - like the Greenspan meaures in the US as a way to dampen the impact of the dot-com burst - creating more problems in the long run. I suspect the stimulus package will come back to bite China in the long run - as cited in the article, I've seen huge amounts of waste as a result. One of my friends made a long trip and came back with nothing but pictures of deserted housing blocks and Ozymandian local projects.
*Important note: nobody in China has the right figures. It's not like there's secret numbers the government keeps hidden - the center has very little idea what's happening in the provinces a lot of the time, though it tries hard to find out. That's why the unofficial population estimate is 100-300 million over the official figure of 1.3 billion, for instance.
*In my experience economists suffer the second worse case of deformation professionale I know, beaten out only by computer programmers. Engineers have to be pretty high up there too.