1. Netscape had a "dns helper" -- which ostensibly could only do DNS lookups, is designed in the principle of least privilege.
2. Ariel Berkman's xloadimage implementation -- which implements every image loader as a separate filter in a separate process who can do nothing but input image data and output image data (in the "common" format), is designed around eliminating trusted code.
The former could (and did) suffer a bug that affected DNS lookups, and was convinced to perform all sorts of network traffic since, it by definition needed to perform network activity to do it's function, and it could access files like resolv.conf because again, it needed to do that to perform it's function. That it couldn't be exploited to "yield root" wasn't really relevant, since most people didn't run Netscape as root. It could read user files and ship them over the Internet which is frankly bad enough.
The latter, is what DJB is recommending.