edit: It's obvious the quoted person had no idea what they were doing -- even a few seconds at arms' length from a fresh nuclear reactor core would be fatal. And quite a few satellites in that era were nuclear-powered.
It's not as if accurate knowledge of radiation was readily available, in the 1970's.
https://en.wikipedia.org/wiki/Radioisotope_thermoelectric_ge...
https://en.m.wikipedia.org/wiki/TOPAZ_nuclear_reactor
The flight profile did indeed have the reactor core being ejected into a graveyard orbit before deorbiting the satellite:
https://en.m.wikipedia.org/wiki/Kosmos_954
The US ran a couple of experiments but otherwise didn't officially use them:
https://en.wikipedia.org/wiki/Nuclear_power_in_space#Fission...
(By the way, there's an documented instance [0] mentioned in the sibling comments. The hazard is much worse than you'd think: the space reactor didn't simply fall in one piece, but left a trail of fragments 600 km long, some of which were lethally radioactive. It's pretty lucky this one happened in an uninhabited wasteland).
Whatever the case, sure, it's certainly not a reliable safety test. But it was wise to keep this thing away from people. RTG's do have highly dangerous materials like polonium or strontium and there have been accidents.