Server mixing: Each call participant sends its media to a server. The server "mixes" the media together and sends it to each participant. This works with many participants, but is not compatible with end-to-end encryption because it requires that the server be able to view and alter the media.
Selective Forwarding: Each participant sends its media to a server. The server "forwards" the media to other participants without viewing or altering it. This works with many participants, and is compatible with end-to-end-encryption."
Imagine an end user who is interested in "very small calls" with friends and family. She is not interested in communicating to an infinitely large audience ("broadcasting"). She never has group calls on Signal with 40 people, even ones with Grandmother and full extended family are well under 40 people. We have to use our imagination because this user does not actually exist.
The imaginary user reads this blog post and she thinks to herself "Full mesh sounds like the best design. There is less/no reliance on a third party, traffic does not need to be sent to an additional third party server." With full mesh, there is no need to mention the caveat "without viewing or altering it", or selectively choosing not to forward it to certain recipients. Full mesh seems to give the user the most control and require the least dependence on third party servers (not necessarily "no dependence", but the least dependance).
Then she reads this line: "Because Signal must have end-to-end encryption and scale to many participants, we use selective forwarding."