Okay I've seen it so many times now that I went and watched the video (the one the article also links to), and I can confirm that this quote has absolutely nothing to do with AI image generation. The first part of the quote in the post title makes this pretty obvious. Miyazaki watched a diseased hunk of flesh struggle to pull itself forward in an attempt to please the trainer that it knows how to move. This was his reaction.
Would Miyazaki have a similar quote to say about AI images? Maybe. Possibly even probably. But this ain't it.
The guy doesn't look very Sherlock to me... but I've seen worse.
And where's the betting pool that the cute boy turns out to be Moriarty's son?