I think what he meant, is twitter does not have an embedded link shorterner on the site but only if content is submitted via external links. Like HootSuite when submitting to FB or Twitter you can shorten a link while submitting the content. That would be a very welcomed feature for twitter in the long run.
Ah, I see. Yeah, I agree; I'd like to see t.co better integrated into the normal web UI, not just the link-sharing interface (twitter.com/share?url=...).