It is impossible for me to take this post at face value coming from a director at Google. That old saying about getting someone to understand something when their salary depends on them not understanding it comes to mind...
That said, the actions they've taken are concrete and verifiable, and this is a pretty explicit promise. I believe it has less to do with privacy as a goal and more to do with avoiding regulation.
* And another post on the front page indicates that Google is changing the way they track anyways, likely at little-to-no cost to them. See: https://news.ycombinator.com/item?id=26328428
It's sad to me that a fair amount of the people actually doing the work at Google believe the company line on this stuff. I suspect because some of the work does hamper Google's ability to track. It just hampers Google less than other tracking companies. Thus, it's still a net gain.
People working on AMP, Manifest V3, and so on don't seem to understand how the leadership is playing them like chess pieces.
The author of the post deserves an award for doublespeak. It's like Facebook's lawyers saying "user privacy hurts small businesses, therefore let us collect all your information".