He created desire. That, combined with available funds, created demand. Take away the available funds -- like in the island example -- and there's no demand.
Anything sold to people with no savings by definition can't count as an increase in demand. Unless we increase debt -- which hasn't worked out so well after all, so I'll say it doesn't count -- any money spent on an iPad by someone with no savings is money not spent on something else. It's shifting demand, not creating it.
There are only two ways to increase demand:
1. Increase desire among people with savings.
2. Increase disposable income among people with unsatisfied desire.
And just to be clear ... where exactly in that article does it state anything about demand=0?