He's talking about the kernel. The Windows NT kernel and the Windows APIs use handles to represent kernel/API objects, and every handle has things like security associated with it.
For example, CreateProcess() gives you back a HANDLE value representing the process, and you can close it with CloseHandle(). Everything is a HANDLE: Files, pipes, threads, etc. A notable exception is sockets, which for historical reasons use an API modeled on BSD sockets.
The object stuff you're talking about is presumably COM, which is different. COM is great, but has nothing to do with the kernel.
