I'll admit I could do without his snarky sarcastic comments (they didn't land, and were a little try hard), but I think he hits at the main point correctly. I'd even add that SO could've ruined the series, vs. it being in limbo. Two things come to mind.
First, as he says, the game seemed merely to present the appearances vs. the essence of Shenmue. I can play life simulators and gambling games elsewhere; the true reason I like them in Shenmue is because they're added to the substance, Ryo's quest. I don't care about Demon_boy29 helping me beat another swath of generic Chi You Men.
I'd think the aftermath would've led to even harsher articles like "Was Shenmue Ever Good?", and in that era, I think more pundits would say no.
Second, the timing (2004-7) would've been very bad for the franchise in general. Even though this would be a PC release, the 6th generation was all about flashy graphics and shooters, and the retro/AA craze hadn't yet kicked in. If this were to be released, esp. back then, I'd think it would've been slaughtered by reviewers/fans alike (the base WoW came out in 2004). It'd look like a last ditch effort to save Shenmue, and the series would be thought to go out with yet another whimper.
Now that the market has diversified and we're largely through the shooter bottleneck, Yu played the long game and it's been worth it.