the downside to his reasoning is that he is tying himself to a single back end (node) if he used something like mustache he coulkd use any backend, but mustache implies parsing templates on the client. googles closure compiles to javascript functions and I am sure something like that exists for mustache and this would seem very sensical.
Converting a large string to a dom element is not expensive, it is when that dom element is added to the actual display tree when things go a bit awol, this is to be expected, redrawing any GUI costs a lot.
React is an excellent library and I am glad people use it, none of the ideas are radical however.