There aren't two ways of understanding what he said, the context makes it very clear.
He is saying that clients should be capable of censoring "unacceptable" (according to whom?) content. He didn't say "the user by configuring the client" or something of the kind, he said "the client" (i.e. the client's developer).
This has already been tried by some fediverse clients that used to come with predefined blacklists in their code.

Such practice is in direct opposition to Nostr's philosophy.
If he's not confused, then he's openly trying to destroy Nostr.