Oh absolutely, it's hilarious, but very very silly. It's like they wanted to say "monsters are people too, you know?".I really dislike that definition, because it includes the PCs. If everything is a monster, then nothing is really a monster. It's pretty useless as a definition.
I mean, this is the same edition that doubled down on non-evil Drow and then gave us non-evil Orcs (but 4e was the edition that was trying to be WoW, I thought?).