The issue isn't executing untrusted code, it's connections terminating early and causing your shell to execute incomplete code.
The article ends with the example code
TMP_DIR=`mktemp`
rm -rf $TMP_DIR
And the stream ending pre-maturely may cause the second line to end with rm -rf / and then execute it. While this wouldn't do anything anyway without --no-preserve-root added, it still brings up a good point about interrupted connections executing incomplete code which would otherwise be safe if the command was finished.