This is patently a ludicrous argument. How can the speed of encoding an MP3 be used as a proxy for countless other applications of computers?
Programs that are slower than they need to be waste real energy and other industrial resources.
There are millions of computers in data centers around the world. They are working on problems that someone thought it was worthwhile enough to pay for. If C compilers emit code that is slower, that means buying and maintaining a lot more computers, using more energy, producing more greenhouse gas, etc.
Which was mostly GPU code, so it was either CUDA or OpenCL btw. Not actually C.
People do need to realize that the fastest, massively parallel supercomputers are in fact written in CUDA / OpenCL. And the most powerful supercomputers are mostly being used to display 3d-models of a sword-wielder fighting a guy with guns.
Daniel J. Bernstein made the same comment in his slides about "the slow death of the optimizing compiler"[ https://cr.yp.to/talks/2015.04.16/slides-djb-20150416-a4.pdf ]. Basically, a lot of programs are I/O bound. Those that aren't are often dominated by a tiny amount of super-hot spots that can be optimized by hand via assembly language. Most code is "freezing cold" -- it's hardly worth optimizing. C compilers are giving up safety and getting very little in return, except shiny new compiler benchmarks.
Just to stay within the domain of codecs, YouTube would not be a nice experience on a 366 MHz Pentium laptop with primitive compiler optimizations.
Edit: All the responses are right. Feel free to downvote this ill-considered comment into oblivion, now that I can't take it back.