Pizza joint makes for a cute example but the discussion that followed makes me think that they were NOT talking about promotion of pizza restaurants. As much as Google would want world domination (they would, wouldn't they?), a "normal" pizza joint cares much more about foot traffic than online traffic. All they care about in terms of online presence is that someone types "pizza" and ZIP or town name, their phone number and perhaps an address comes up. But that part is already working and they don't even have to do anything, in fact they don't even have to have a web page let alone promote it. In any location (at least in the US) there are at least 3-4 restaurant review and business listing sites that come up, bringing up all the information that's required to find them.
I think what MC and Eric were really talking about is promotion of cookie-cutter online affiliate sites without any physical location to differentiate them. Otherwise nothing that MC said on the subject makes any sense because geolocation tracking, which Google is already doing, gives the pizza joint all the ranking advantage they may be looking for (and, again, Google thinks too high of themselves if they thing your brink-n-mortar pizza joint actually cares).
So, we too have to stop pretending the dupe-avoidance advice MC is giving was directed at a business with an off-line location because it's not. Thinking of it in terms of a pizza joint only confuses everybody. But if you substitute "affiliate" for "pizza" in that interview, it starts making some sense. Why MC does not want to be seen giving advice to online affiliates - that is a completely separate issue but I don't want to open that can of worms.
And, really, 2-3 paragraphs is all it takes to appease Google's algo?