No, he is not confused at all. He's specifically railing against walled-garden, closed services where your only access to them requires a mobile app (which of course uses the internet), and has no (or limited) web-based functionality.

(Also note that this is Jamie Zawinski, who wrote the UNIX version of Netscape in the 90s. I don't think a guy who wrote a web browser would be confused about the difference between the web and the internet.)