I think his intention was making the comparison to people with jailbroken iPhones that have pirated apps on them, which is pretty much the largest reason on a very short list of reasons why non-enthusiasts would jailbreak.
Microsoft didn't ban people for having modded consoles, but having a modded console was necessary for this. The jailbroken iPhone with pirated apps seems perfectly analogous, and I think people would be far less friendly to these same tactics by Apple (or Verizon?) in that scenario.
