Earlier quoted context omitted.
You can be influenced downstream by papers you haven't personally read.
Of course, but if you haven't read them you also shouldn't cite them. And that's where Schmidhuber goes off the rails: publicly shaming published papers into citing you isn't good academic practice. It's bullying.
You can't claim independence from past work simply because you didn't look directly at it. The job of an academic researcher is to know the landscape of relevant ideas, where they come from, where they're going, and to hopefully contribute a few new good ones.
Citation chains should extend back from your work, along a reasonable line conceptual inheritance, back to a reasonable point of origin. Schmidhuber has different definitions for both of these reasonables than the bulk of the ML research community, to a point that makes him difficult to satisfy.