The question wasn't for me, but no I dont think he is confused, he know exactly what he is doing. He is not the typical billionaire and I wish more billionaires could be like him instead of Jeff Besos for example, or bankers (fuck bankers).
He understands of course twitter is a private company, but he thinks (my opinion) that twitter reached a status where it is more than a company, it became de facto the public square for people public discourse. I would include other places alongside such as reddit and facebook, reddit is the worst. In being a "public square" it has the responsibility to allow free speech, to allow ideas to be discussed and let public decide which ones are good or not, and not a board of people deciding "this can be published, this cannot".
As he have seen recently, a combined effort by just a few of those companies is enough to bury a story, a person, a subject to be discussed.
But I think his strategy is not the best. I think the impact of him and a few other people by leaving twitter and opening an account in another lookalike company would have a much bigger impact in the discussion. Or open himself a new company, or buy a smaller one and throw money in it.
If he took a non Twitter route, it would take a lot more time and wouldn't really solve the problem unless the new platform was far far better or offered something else extremely valuable that somehow couldn't easily be duplicated by Twitter. Odds are for quite some time, even if Twitter started to falter somewhat, they would remain the go to source for most media until they had no choice.
Now if he took over Twitter and made the changes he says he might, the media has little choice but to keep focusing on Twitter because those users really have no where else to go where things aren't far more open than on old Twitter. Might as well just stay put. Then it would be up to another existing platform to change course and take old Twitters place, or for a new Twitter to emerge. Which could happen, but again, would take time, and may also come under hostile money exchanges from more billionaires.