Well, they are doing a mix of things. They have procedural tools in order to create planets with biomes, object and areas which they can then fine tune to fit an area so they can procedurally create a planet with biomes and then edit that afterwards and craft specific locations.
Nah, it's just Chris being Chris, waffling on about something he has only a vague handle on, leavened with a bit of assuming that just because he says it can be done, someone at CIG will make it so by the end of next week.