The claim is not generally true. Jd Smith1 sometimes states things as if his own mode of play is the only one.
However.. for his group, it could be true in the only sense that really matters.
Let us differentiate, for a moment, between "consequence" and "consequence that the players give two whits about" - there may be consequences, but whether those consequences are meaningful to the players is the issue at hand.
If they are a bunch of muderhobos, with nothing they care much about other than their own skins, who respond to any setback or loss with "shrug Easy come, easy go. Sure, I liked that NPC, but... there'll be another next week," then what Jd Smith1 says can be accurate as far as it goes - for them, nothing but death is a meaningful consequence.