I can't answer your questions about whether it's true and why.
It's possible that he would've taken that stance because sensitive information could be put into the block chain. Consider the consequences if some of the following examples were included in the block chain (and thus stored on every PC running the client):
- Diplomatic cables from Wikileaks
- Illegal pornography
- The name of someone who has name suppression granted by a court
- The private key for an important encryption algorithm (eg this one)
While some activities making use of Bitcoin may be illegal in themselves in some countries, storing data such as the above in the blockchain would create additional legal problems in many countries.