He means that this problem will solve from itself once the block halving happened often enough. Then the fees for a block will be a bigger part of the reward for finding a block and no pool can include no transactions anymore.
When the internet speed is very fast for all the miners, the benefit of smaller bock (fast block relay speed) will diminish. All of them will include more transactions.
It's not only the internet speed. The network, which means all of the miners, have to verify blocks and the bigger the blocks the higher the time needed to verify them. Which means bigger blocks need more time to confirm.
I thinke the best way to solve this is more transactions, so higher fee and dropping block reward.
So pretty much even if we raise the block size, it is going to do nothing. Wow. Why is everyone making a fuss over it then?