It seems like maybe he confused positive and negative feedback? But if you think he's created a situation where positive feedback is going to cause massive problems down the line, I was interested in knowing specifically what you had in mind.

Yes, he is confused. He has created a situation where people he influences will have a negative attitude toward solutions described as introducing negative feedback.

Somebody who cannot understand what "negative feedback" means should not inspire confidence in his analysis of a mature queuing problem.