"Beautiful novelty" is the phrase he used to describe "pretty (but) shitty" start-ups (another phrase in the post).
I’m guessing people who think that looking pretty (which is not the same as having good design – though the author of this text seems to believe so) is all that’s needed are really out there. Some. Maybe. I don’t know. But that doesn’t seem to be a view embodied in any way on the website he was linking to and specifically saying he was responding to.
I can’t find the arguments he is responding to on the website he says he is responding to. I think that’s kind of important.
I imagine that beautiful novelty, like beauty, is subjective and something not everybody would agree on a case by case basis. Though I bet most people have seen a site that had no flaws, was stunning (and yes all you designers- i know it's not just visual, it's interaction, etc) but still didn't convince your head or your heart.