I don't think it's actual misunderstanding, it's ignoring the real issues. He is focusing only on the technical side of the problem (as if that's the only criticism people have about AI) and I fear his pretending there's no ethical, societal and economic problems is deliberate - as opposed to an oversight. If you look at the number of influential former AI critics/skeptics recently changing their tune like Linus, it looks to me like they are simply all buying bought up.