I find this hard to believe. He's stated repeatedly that he wants attrition earlier on than later on because of cost and time to train. Under the old system, it was frustrating how many failures one could have in flight school - we were routinely winging people with 8-9 failures and they may have never been triggered for SMS or had to redo an event; in other cases, we had people failing multiple times that required re-fly's and it was a huge use of resources (flight hours and IPs with STAN quals in some cases). I think his point was more along the lines of "there's probably something going on if you're having that many failures, let's take a look under the hood; if you're not cut out for this, let's make that decision earlier than later because we are really spending a lot of extra time and money on these low performers with a big backup of people chomping at the bit to replace them."
I completely agree, and I realize that making it through flight school is not only a function of can you be safe in a plane, but can you do it in x number of events and y number of hours. But from the students' perspective what we worry about is the 3 and out rule of the new system. If you fail a test in API, have a bad day in Primary, and have another bad day in advanced you're probably going to be attrited under the new system, at least how we understand it. And at least from what I've been hearing anecdotally it sounds like attrition is already rising at the advanced squadrons.