That quote is pretty out of context.
If they succeeded N&B would have been amazing, I get the feeling they were too ambitious and had to scale things back a lot.
Imagine instead of just completing obviously placed challenges around a barren map, the vehicle creating was used to help you explore and find secrets in the levels just like learning new moves let you do in the first two games?
Whatever the case he didn't achieve his goal, lol. Good game though
But they didn't succeed and the quote is not out of context, they still felt platformers of yesteryear had no place in tomorrow's market.
Whether N&B is a good game isn't the issue, the fact that it's not even close to being a proper platformer and that Rare didn't think those type of games had a place anymore on Microsoft's console is the bigger take away.