It can be done... but it's not a fast or easy way to make money.
Please don't take this as discouragement... and of course there's a but... but, the article you linked to was written in 1979. That's before my time, but I understand that trade with China was poor, they also tell me that there was no internet access to online shops or even smartphones. (okay, I'm not actually so young as all that - but keep in mind the very first Personal Computer came on the market around 1981) Things are a little bit different now.
Silk is easy to buy (from cocoon to fabric and every stage in between) these days. The price can be pennies a pound all the way up to $45 an oz. And that's just Bombyx silk - the most common kind. People will pay more for quality and for ethical raising practices - like no slave labour, being nice to
trees, that sort of thing. There are a lot of different ways to process silk. It's quite easy to do so by hand at home - however it is time consuming.
Now that I've got the discouragement out of the way...
I believe there are possibilities with raising silk at home. Silk is popular and there is a lot of ideas that could fit well into
permaculture. You would need to do something out of the ordinary, market it correctly, and take a few years (I think 5 or 6) to get your quality top notch.
I don't have time to go into it now, but have a look at
Wormspit's site for inspiration - and an idea on how labour intensive growing and processing silk can be.
Scott, I would love your notes and links if you are willing to share.