A universal machine with capable of n operations per time unit can be simulate a universal machine capable of n+m operations per time unit. It's just a bit slower.
His argument seems to be that this will make it so slow that that it won't be able to keep up. Which is just stupid.
The Church-Turing thesis says that a universal machine can simulate any other computing machine given infinite memory. It doesn't say anything about how fast it will be :p
Maybe I'm misunderstanding this guy and he's not saying something so completely and utterly stupid. Anyone who wants to correct me please do...