Wherever he is teaching must not be a very good school (edit: ah Berkeley; it's overrated), everything he says is bunk.
And yes, I have taught elementary, high school and college classes. I don't do grades for elementary, but for high school and college it is not difficult at all to assign objective grades for work done. Also, the students respect you less not more when you just give out all As. Most students respect fair, impartial and realistic grading. Those who don't probably shouldn't be in college anyway.
It's also OK to do as Reed College does and keep the grades in a private file in the event of subsequent grad school transcripts needed, and instead evaluate each student with written essays and never let them see any grades. No grades at all is better than all As. Giving all As does not make you a "nice guy" any more than giving out free crack samples so people "like you" makes you a nice guy. The people don't really like you because you give them free crack, and you're not really a nice person because you do this. Wow, why isn't this obvious to people. It's amazing I have to even say this.