Not exactly in line with the whitepaper, is it?
Yeah, no. Not at all.
But this is just speculation on his part, and the courts would have to exercise enormous power in order to get miners to do what he's proposing--more power than they probably have. Plus I'm not sure if miners in China would think they're bound by a US court order (if I'm understanding this correctly). Miners sure as hell wouldn't do it voluntarily.
Plus I don't think the legal system would in effect destroy bitcoin in order to settle a single case. They'd be doing more harm than good, and I have to think that they'd see that. Anyway, I think this is a bunch of BS anyway and yes it's FUD in the extreme. CW is very wacky to say the least.