I grew up understanding that one of Tesla’s big innovations was using AC to transmit power distances so that there weren’t tremendous losses and line meltings or something. Can someone help me reconcile the delta between this understanding and the above comment? Was this not actually a thing? Or have we overcome it somehow?

HVDC is a miracle of modern engineering that could not have been done in the days of Tesla. It removes several sources of losses that otherwise would have turned valuable power into heat. That said, it isn't without drawbacks: the cables are quite expensive, harder to repair and somewhat fragile, and 'local stepdown' which otherwise would just be a properly rated (capacity and insulation) transformer now turns into a much higher technology exercise. HVDC is for now relegated to a long haul role not unlike oil pipelines compared to the AC network which is far more interconnected and wide spread. You are unlikely to see HVDC used for lower level distribution in the next decade, just as you are unlikely to see your local gas station hooked up to an oil pipeline.