Have I misrepresented? He seems to be clearly stating that distributed nodes are a small scale solution with consolidation at scale. That I find depressing and stand by what I said. If I have misinterpreted, then please correct me. The only other interpretation that I can see is he is agreeing with me, that unless clients do the block processing and miners only "generate" coins, then the result will be big server farms as we are seeing now. I think that is a rather wistful reading of the words, however.
Yes, you have, though it's not your fault. What a client in Bitcoin is has been subverted into something that can't enforce the rules at all and is utterly dependant on trusting miners. That was never the design of the system.