Bah. Tempest in a teapot.
Guy's definitely an idiot - and his analogies suck. (Yes, my phone stops being able to make phone calls if I go into an area that has no service - but THE PHONE STILL WORKS FOR OTHER THINGS. Comparing that to a device that CHOOSES to stop functioning, for all tasks, if its internet connection drops for too long is idiotic.)
That said, this is a silly argument - because Microsoft isn't going to release a device with those restrictions.