1) This is a gross over-generalization of his statement;
2) The current system as is is just an XP handout without any challenge.
I don't see how removing BB+TR Penalties or increasing First Time bonuses is any different than the system we have right now. A skilled player can already farm "free XP without being challenged" because they've done the quest enough times to learn it. I was getting BB on elite Twilight Vale quests, and I consider those, next to some Xoriat quests, to be some of the harder quests I've had to endure. Granted, it was me (12 Bard/6 Fighter), a sorc, and two hirelings, but we were still getting a massive +70% boost to exp because of BB with very little challenge.
The only people hurt by BB are new players, FTP players, and individuals who don't want to spend time taking on a quest they cannot handle due to reasons that Duskofdead has already mentioned. The people who use and abuse BB to the extreme are not being challenge by it, and they're simply zerging the quests as fast as humanly possible to maximize XP/Hour.
And at what cost? A poisonous community and a dismal, non-existent grouping system? No thanks. The old system may have been slower, but that's no reason why BB should remain when it's hurt the small community we have here.
If my solution is unacceptable, I'd be open to others. Frankly, I like the idea of removal of BB along with the TR penalty.