It means, Wizardry, that all these rulesets that you're in love with are a means to an end, not the end itself.
Maybe if you actually understood that, you wouldn't be such a tightwad about RPGs.
No, it means that you don't need rules to role-play. That's all. Obviously Gygax knew that because he created RPGs by creating a wargame suitable for role-playing with. It's a painfully easy concept to grasp and I absolutely love it when people post that quote.