Yes, that is what the person you are responding to is saying. That's why they are questioning the assumption that this practice extends to 18th-century books that are solidly in the public domain.
If it is happening, it is an outrage. However, the 404 article doesn't actually provide any evidence of this; it just connects the shredding of digitized books and the digitizing of rare books to the assumed shredding of rare books, which isn't necessarily happening.
