In fact, you are actually the one who is grossly misguided. Per that exact quote,

  The GPL permits anyone to make a modified version and use it without ever distributing it to others. What this company is doing is a special case of that. Therefore, the company does not have to release the modified sources.

Specifically

  Therefore, the company does not have to release the modified sources.

The faq is explicitly stating that the GPL would not require releasing modified source, and that if you want to force the releasing of modified sources, you should use the AGPL, as it has a clause to cover network server software