"Instantly" as in you get a stream of characters and with UTF-8 you always know as soon as you have received a full character. With your encoding it is always possible that you have not received the full character yet and need to wait until the start of the next character (or a timeout).
Also, the human readability sounds fishy. Humans are really bad at decoding high-order bits. For example can you tell the length of a UTF-8 sequence that would begin with 0xEC at a glance? With my scheme, either the high bit is not set (0x7F or less), which is easy to see you only need to compare the first digit to 7. Or the high bit is set and the high nibble is less than 0xC, meaning there is another byte, also easy to see, you compare the first digit to C.
The quote also implicitly mis-characterized the fact that in my scheme an incorrect character would also not be decoded if interrupted since it would lack the terminating flag (No byte > 0xC0).