"Personaly I think he's talking out of his arse"

Yeah, me too!

A microprocessor/controller will always require some hardware to connect it to the outside world!

And with HDLs, "hardware" design is becoming more of a software excercise!

And look at products like the Triscend, which recognise that some things are best done in hardware, and others in software - and so provide both on a single chip.
All the major FPGA vendors are going this way, too - with synthesisable processor cores to go on their products!
Again, you still need some real hardware outside these devices to connect them to the real world.