He’s stating there could be a situation where division winner goes 16-1 and is #1 seed and division runner up goes 15-2 and is the 5 seed. Let’s say other division winners go 13-4, 11-6, 10-7.
#1 seed gets the bye, and say the #5 seed 15-2 team beats the #4 seed 10-7 team. The other division winners win their playoff games.
Under current format, 16-1 top seed then hosts 15-2 #5 seed, and #2 seed 13-4 seed hosts #3 seed 11-6.
Under proposed format, #1 seed 16-1 would now host current #3 seed 11-6, and the wild card #5 seed 15-2 team would host the current #2 seed 13-4 seed.
That’s an extreme scenario, not sure if it’s happened before, but it could happen. The typical re-seeding scenario would involve the #5 seed having a better record than just the #3 seed, not both the #3 seed and #2 seeds. With just the #3 seed being involved, it doesn’t change the home teams. But this rare scenario would change the home team.