He is absolutely right, but the issue with no contact training is that you don't get used to the hits.
In wrestling and MMA you don't train full power (most of the time) but you step it up before a fight as you need to be accustomed to the "bumps".
Being thrown or punched hurts less if it happens a lot. Obviously you absorb more damage long term, but you perform at a higher level short term.
I assume rugby is similar.
Talking as someone who got back into rugby not too long ago (albeit have now been out for a year), you absolutely need contact to get used to the hits. However, I don't believe you need a lot of it, especially if you're already playing each week anyway.
The question is, does hitting a pad in tackle practice actually cause any damage to the brain. Heading a football is very different to putting a shoulder into a pad (at least in my mind), to use another currently topical head injury cause.
It's a tricky topic, but one I hope that they continue to work on. I will point out though, that big changes have been made in the last few seasons, the almost certain positive effects of which, won't be known for many more seasons. The people bringing the case played in a very different era, and whilst they may absolutely have a case (it certainly sounds like they should in some cases), it doesn't mean rugby as it is now, necessarily has to make huge changes.
I do like the idea of proper mental checkups/scans etc once a season.