Taken out of context it seems like Smith is bashing the "neo-otaku" for liking "prettified transliteration", and I was going to criticize him it. In short: It's easy to fear that you don't get the "right" translation and that you would therefore rather sacrifice smoothness for closeness in the dialogue. Thus he can't assume that people will like his translations, especially not the otaku (they shouldn't bitch about it though), also, people should have the right to choose.
It was not until I read the article and saw that it was about publishing that he made sense:
>The hard-core otaku have been, to an extent, hoist by their own petard. The manga market has expanded explosively. This has meant that many new readers have entered the market, readers who aren’t otaku, just…readers. They aren’t fanatics, they don’t haunt the forums and message boards, and they are now the bulk of the market.
The two most important things for at translation is considering the reader and staying true to the original text. If the reader is one, translate it one way, if the reader is another, translate it another way as long as the translation stays true. If you want to translate manga or anime for the general public, it should be done with them in mind.