I think this is a very negative approach. Instead of working with webmasters to ensure better search results, he wants to keep the two worlds seperate.
And to answer his question: No I wouldn't be doing this if search engines did not exist. I would not have set-up my website if search engines did not exist. Why would I want to set-up a website that couldn't be found?
It is just too bad that we have people like this guy running companies like FAST. People who just do not "get" what the internet is all about.