The paper does that by hooking into some basic results of theoretical computer science: Turing Machines (TMs) can model any program, there is no program that can look at another program and say that it finishes execution (the halting problem is undecidable), and, oops, you can compile TMs into Python type hints, therefore type checking Python is undecidable.
If I understand correctly, that means type-checking python as you described was an open problem before, and this paper effectively proves it will never happen (ideally). They do this by establishing Turing completeness of type-hints, which are the main mechanisms for type-checking.
* https://doc.pypy.org/en/latest/faq.html#would-type-annotatio...
It also means that it's expressive enough such that it can be more powerful then a traditional type system
Turing equivalence seems more interesting. Intuitively I'd think that type systems are supposed to be more constrained than programs they are being applied to. The fact that they are equivalent makes me think that those type systems are flawed (though I can't explain why).
There are plenty of languages with turing complete type systems.
agda, idris, coq, haskell, scala, etc...