Small simple games? Well.. I sort of understand what he's saying, but it sounds like what he's trying NOT to say is that Silicon Knights suck at creating gameplay. That is why they are different to Nintendo.

Though The Legend of Zelda throws his whole theory out the window.
"You see... nintendo make games, easy to access and very simple now... we like to make movies and stories, and call them games! and maybe slap a bit of gameplay in for those gamers out there, or steal gameplay from another game, but that doesn't matter because our games focus on the story and characters!"
But then, if they liked Nintendo THAT MUCH, why on earth did they "split"? Wouldn't that be a GOOD thing for them to stay? Variety! It's not like they'd have to collaborate with Nintendo for every part of every game ever. Unless Nintendo said "we don't want your games on our console, piss off" I don't think Silicon Knights will stop developing games exclusively for Nintendo.