He's right to emphasize the properties of the systems that support interactive development with a long-running image. In Common Lisp, the difference between defvar and defparameter is a simple example. Traditional Smalltalk systems only supported image-based development. But I always preferred the moderate approach exemplified by most Lisp systems where the source code isn't overly entangled with the image state. As…
The REPL, often called a 'Listener' in Lisp is an explicit dialog with the system, where the dialog is visible and parts of the dialog can be reused and inspected. Also the dialog can be suspended temporarily and we interact with the running code itself in break loops until we resume the original dialog in some way.
This usually is the horror for people wanting predictable code - where in an interactive Lisp, one can change code interactively at runtime.