It seems like Altman is a PR man first and techie second. I wouldn't take anything he actually says at face value. If it's 'unfixable' then he probably means that in a very narrow way. Ie. I'm sure they are working on what you proposed, it's just different enough that he can claim that the way it is now is 'unfixable'.
Standard Diffusion really how people get the different-model-different-application idea.