No, this isn't true at all. If you don't have the physical disk geometry problem, you shouldn't be using XTS. In fact, the whole article is about exactly this point.
In particular: you do not need XTS to get "fast random read and write access".
Taylor's a smart guy. I'm pretty sure he's wrong about this (although maybe he knows something applicable about EncFS that I don't know). If I thought that there was no way any smart person could make the mistake of applying XTS somewhere it didn't belong, there'd be no point to writing the article. :)