No, you've actually missed his point entirely.

He is alluding to the fact that over the last decade or so, consumers have unwittingly slid down the slope of "not having true control over personal electronic devices". Iphones are already there, Android devices are a few years behind, as are most desktop PCs.

Once there's critical mass, it would not be a stretch for ISPs to only deliver internet to endpoints that have a secure element that attests to the integrity of the internet-con ected device. This will of course be done under the guise of "fighting the spread of malware" and such.

Piracy effectively ends at that point.