I read it differently. My takeaway (and I think he says as much in the article) was,
by being bad among those who practice, you can be 95%ile among those who participate.
"I'm also not referring to 95%-ile among people who practice regularly. The "one weird trick" is that, for a lot of activities, being something like 10%-ile among people who practice can make you something like 90%-ile or 99%-ile among people who participate."
In this case, "participate" should include casuals, and "practice" should not. Thats not clear in TFA.
I have personally found this to be true in most arenas, esp casual adult sports or music or hobbies like drawing. At one time some in my gym (wrongly) thought I was a great boxer, but sure enough I was abysmal in competitions but stellar compared to gym goers. Among practicing boxers I was mediocre to bad, among participating non-fighters, I appeared much better. And after a very small amount of actual participation, all those gym goers were downright intimidating to non-participants / nonfighters. This is why I tell people to try out self defense classes. A little practice elevates you above 90% of those who might do violence against you in the world.