If COD's weren't dominating and coming out every year, Battlefield would not be trying to release this game with these amazing graphics in order overtake the COD fanbase. That's what he's talking about.
Competition breeds excellence, that is inarguable.
COD really didn't have much to do with Battlefield getting better though fam. DICE has attempted to improve Battlefield series in each way the possibly could since released. 4 years after the release of Battlefield 2 they were still releasing community map packs and patches. They dedicate themselves to their series. Its just people and EA have finally seem what a gem the Battlefield series is and have started hyping it and I'm sure EA kicked more money their way so they could do more and "compete".
Personally I really don't wanna see Battlefield 3 get Call of Duty success. Is that selfish? Maybe but the Call of Duty community is an abomination on both the PS3 and 360 and it breeds unskillful play styles sadly. If Battlefield 3 can get atleast Halo status though I can't be mad at it since I generally think the Halo community is alot better and more has more competition.