Sliiiiigtly skewed perspective there but based in facts.
Used to develop the machines that produce computer chips and his arguments about yields going down as the chip size increases is true. But it's not true that chips that size are rare and would get 'laughed out of the wafer fab'. Plenty of applications use chips like these, it's just that they cost a lot to make because the yields are so low.
The real reason why Nikon won't go for full frame is that they can't make CCDs that size work around the problems with CCDs whereas Canon can make CMOS sensors work at that size. Different technologies.