I agree with the author that code may not be literature. Taken from the opposite line of reasoning there have been movements in the past to make literature more like code. Specifically I thinking of Oulipo (which included Calvino as probably the most famous) on bringing new structures to literature including some generative ones which could be thought of as programming or combinatorics.
A great group blog that keeps tabs on interactive and generative literature is http://grandtextauto.org/. I highly recommend it.
I wonder how blurred the lines can truly become between code and literature, though. If a piece of code is primarily intended to be read and discussed, does that make it literature?
http://en.wikipedia.org/wiki/Oulipo