I first saw the saying when DRY was being applied without any nuance. If a piece of code appeared in two places, it was obvious, and important, to factor it out, because that was 'good coding practice'.
The saying being discussed was pushback against that kneejerk, thoughtless application of DRY. The 'cheaper than the wrong abstraction' is pointing out that DRY isn't a 'no tradeoff' policy. By factoring out any duplication, many uses pass through the same code. If the uses don't quite match, there is a tendency for the code to get modified to fit them anyway. This, over time, makes the shared code simultaneously unfit for use, and widely used. A recipe for poor code quality and system health. Ironically, this is the outcome that DRY was called in to address.