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The problem that he points out is that, unlike swordplay or archery, magic has no real world basis making it difficult to include.
Another problem is the way that magic is approached by a typical RPG designer. Having resigned himself to the idea that magic just makes things happen for no good reason, he cannot stop himself from turning magic into an all-inclusive overwhelming technological advantage. Magic becomes air superiority, rifled barrels, and force fields, all in one package. Small wonder then that almost every character in any MMORPG is considered gimped unless he is a mage to some extent.
The only solution for this is constant vigilance and hardcore balancing. It also helps if your basic game design and mechanics are modeled around a no-magic environment, so you can at least get that part right before you try to balance in a magic system. Remember that magic wasn't included in the original Dungeons and Dragons until Eldritch Wizardry. This was the correct approach. The ensuing generic and boring magic system was a result of a lack of imagination, not a flaw in the overall design process.
He's definitely going for a realistic game though - World of Warcraft clearly is over the top and unrealistic, but that doesn't mean it doesn't work.
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