The estrangement he observes aren't that surprising, in either direction. Many universities have both Math and Applied Math departments. Why have both unless the mathematicians in the Math department don't want to work on applications? I have spoken with people who say if you're working on an application, "it's not really math." In biology, there is almost certainly a self-selection effect in which the field attracts…
"Applied Mathematics" as a field is not literally "mathematics applied to something"; it's a fuzzy group of related topics (things like numerical analysis, PDEs, or computational linear algebra) that's grown large and culturally distinct enough to have its own department, much like theoretical CS or statistics. There are plenty of "applied" mathematicians who don't work on applications, and some "pure" mathematicians who do.