Nah, it's a catchall for discrediting anyone without actually going to the trouble of dismantling their arguments. 
In my country, while we were under communism the equivalent was the phrase "the people's enemy". Once you were labeled with that, you were effectively an outcast and would leave the country, if you got lucky. 
If you weren't you got a "fair" trial and were shipped to an island called Naked island where you'd be breaking rocks the whole day, every day.
By the end of the 80s that term was thrown around in tandem with several others, but by that time it was so overused nobody gave a single shit about it. The "far-right" label is reaching the same point. 

 I should have known... 

 I think he worded it awkwardly and that wasn't what he meant.
Maybe the meaning is that the L1 blockspace would be enough for just the biggest txs that will ne able to afford it. 

 My explanation wasn't any better, so let me try again.
The L1 blockspace would be enough just for the whales, institutions or countries to transact on.
Not 1 transaction/block, but just the most valuable txs would/could be done on L1 due to the costs.