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No, it's not true.

It was used for "graphics" on character-only terminals.

isn't CR without LF how CLI progress bars work?

He says there are good usages of CR, he only argues for getting rid of LF.

Replacing LF behavior with NL behavior in terminal raw mode is a non-starter, decades worth of software will break. The enter/return key only sends CR anyway, software has to decide what to do with that: sometimes the answer is emit CRLF, often there are program-defined margins so the CR gets translated to direct cursor movements.

I'm pretty sure drh is making a case only against the use of CRLF in protocols, not trying to redesign terminal in the process. If you're emulating a machine which understands LF then you're kinda stuck with line feed semantics, for better and for worse.

Nope.