Absolutely. What does he think is happening when Bitcoin goes up in USD terms? You're squeezing more and more value into a scarce denomination. i.e. the value of ONE BITCOIN will be forever increasing and can buy increasingly more "things"

Claiming that increasing the divisibility will inflate the currency would be like saying that if I have a gold bar (of which we know has a certain volume/density/USD value) and cut it in half, then I now have two gold bars of that same volume/density/value.

Imagine that USD value is the equivalent of density and it will make more sense.