Technically this guy is right. Public/private keys implies asymmetric encryption, where the private key must be kept safe. You could, however, meetup to establish a shared secret. DH makes physically meeting up or communicating out of band not necessary.
Anyway, isn't limiting encryption something communist and totalitarian nations do? Even if not banned, they might restrict you to DES or other weak algorithms which are easily crackable, so there's hardly a point.
We:
A) Have many federal compliance forcing the use of strong encryption (HIPAA for example) so it would be a legal mess to sort through that stuff
B) Don't want to be associated with the oppressive nations engaging in similar technical restrictions
This feels like an unneeded comment by Rand but if there's politicians out there actually advocating for this stuff then I guess someone has to speak up.