For example, with COBs I've read that to get them down to near-proximity strength you have to run *a lot* of them at 10w or so. The initial costs are higher, therefore people tend not to do this. They use stronger COBs, fewer of them, therefore sacrificing "efficiency" (as lurch is describing it) for cost.You can have cheap lights as a single source. You can have cheap lights evenly spread.
On the other hand...
You can have expensive lights as a single source. You can have expensive lights evenly spread.
If I understand correctly, I believe he's saying a similar efficiency could be had with less initial cost using less efficient LEDs placed closer to the plant and distributed around the plant as more sources.
I understand your point that the same can be done with energy efficient diodes. It just doesn't seem anyone's making lower wattage fixtures using high efficiency diodes. They tend to be 5w mounted in reflectors which require a fair amount of distance, and limit the divisibility of the light source.
Maybe I'm completely wrong about the point he's making.