In the full context of the question and the answer, Zimmermann explains that because they didn't have a smartphone client for PGP, they were forced to hold the keys on their servers. Under these conditions, a court order could force him to silently wiretap users who otherwise believe their product is secure.
I don't know enough to evaluate his decision not to use PGP on smartphones, and what the challenges there are. It's also possible he was incorrect or misleading in marketing Silent Circle's email service - the question starts with "You said in the past that Silent Circle’s products were secure because you don’t hold the encryption keys...", and that is obviously not the case (for email).
But I certainly wouldn't assume he's bought off. In the full scenario he describes, that Silent Circle was in, it was impossible for them to guarantee end-to-end encrypted email bodies in the long run. That's all he's saying.
-- Eric