The argument I replied to concerned best-case for length. I.e. a perfect hash at 128 bits delivers 64 bits of security against collisions. (Note the 'perfect' part)
64 bits of security is good enough against most non-nation state actors.
Obviously, MD5 (and sha-1) aren't anywhere near perfect hashes. And obviously, you need to look at more than length when judging a hash.
Basically my point was that md5's hash length isn't a big problem.