Why would you say that? Services are able to require special characters, variable casing and numbers. Why would the reqirement of max length of the password cause the storage to succumb to plain text?
He should have said a short length limit, it's still recommended to have a length limit of some sort (I think 64 is the official recommendation) to prevent people from doing shit like pasting the entire Shrek script as a password (because you KNOW some people will lol)