I don't know if who he was referring to is actually relevant in the scheme of things. Is it appropriate to insult customers in that manner? I don't think so.
But perception is sometimes close to reality. We've all had a dilution of our benefits, with 1Ks (and yes, GS's) on upgrades and customer service specifically, Golds/Plats mileage, and Silvers bags and E+.
1K is the new silver, Silver is the new kettle, and kettle is the new GS with the ToDs.