This was done on Ethereum(context will probably be lost if you don’t know about DAO’s, google it) but Charlie is talking about the true need for decentralized organizations. In the case of cryptokitties there really will never be a need for it. The scaling issue WhalePanda brings up is that if Ethereum delivers on their promise there could be hundreds of thousands of these things.
Charlie says that for an application like that being centralized is completely fine. If google makes a platform for this why would it be wrong to create it there? There can be truly decentralized organizations but not everyone needs to have one. Just like currencies, not every single one of them needs to be decentralized.