Actually I think they're referring to Nightborne, Blizzard straight up just gave Night Elves to the horde. Unlike Blood Elves and Void Elves (whose ears stick through plate helms and you can actually see skin tone) there isn't much of a way to tell a Nightborne from a Night Elf in full plate with an enclosed helm since they share a few skin tones.
So yeah, his 'faction identity' thing doesn't make a lot of sense with the whole "They're just Blood Elves with a different eye colour and a different Culture"...he literally just described the Nightborne difference to the Night Elves...and yet the Horde got them just fine...