"First, the compiler defined a secret global variable for each inbound function parameter, plus another secret global variable for each function to hold the return address" I believe 'hidden' is the word he's looking for. And one doesn't have to go all that far into history to find architectures w/o hardware support for a return stack, see e.g. Parallax Propeller. And the problem with static variables (hidden or not)…
Your reference to the Parallax Propeller is domain-specific and a bit anachronic; you're talking about embedded computing, while he is talking about general-purpose computing a few decades prior. The point of the post is that general-purpose computing was different in the past (in a sense, that's the theme for the whole blog! that and compatibility hacks), so going this far back is necessary.