I don't see how this contradicts any of what they said, unless they've edited their comment.

You're right we had graphical apps, but we did also have very little video. CuSeeMe existed - video conferencing would've still been a thing, but with limited resolution due to bandwidth constraints. Video in general was an awful low res mess and would have remained so if most people were limited to ISDN speeds.

While there were still images on the web, the amount of graphical flourishes were still heavily bandwidth limited.

The bandwidth limit they proposed would be a big deal even if CPU speeds continued to increase (it could only mitigate so much with better compression).