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Personally, I agree with him on most points ...

Right now the best story telling in games is on a lower level than TV and Movies which (for the most part) is fairly bad; on top of this most of this "good" game story telling is done using cut-scenes which means that we're trying to put a static story into a dynamic experience. At best there are a couple of different paths that a person can see the story of a game which are (trivially) impacted by choices the player made.

Some games (like Metroid and to a lesser extent Resident Evil) have had the story told through the users exploration of the world but this (for the most part) leaves the user with a detatched sense of the story.