So his actual quote isn't nearly as bad as the headline sounds. The way I read it, he's saying the government needs to talk to experts to get a better understanding of the situation and that maybe certain areas need to be clamped down on.
This being a good or bad thing would depend greatly on the specifics of what he means. Can we tolerate nuanced discussion?
No his quote is just as bad as the headline sounds, and in fact worse. "Those people who will try to protect free speech are foolish" is worse than the stated headline, and prefacing "let's close down the internet" with "I don't really understand it so I'll talk to Bill Gates about it first" is not particularly encouraging; though I'd fully expect Bill Gates to set him straight if he even granted him an audience (unlikely) I don't suspect Trump will listen to him. Pretending to defer to experts in order to ameliorate his own ignorance after saying something horrifying is Trump's M.O.
Combine this with "no more Muslims get into 'merica", and I think Mr. Trump has now jumped the shark. Or maybe a better way to describe it is implode ala Ross Perot.
If you interpret his unlettered remarks charitably, it's just another instance of pushing for censorship. Instead of child porn though it's terrorist propaganda. There are good arguments for censorship, though I don't think it would work out so well in America. At least he doesn't seem to know about encryption yet, though it wouldn't surprise me if once he learns he like every other politician on either side wants to ban it.