Earlier quoted context omitted.
RTFA. He addresses that in the first few paragraphs. Because there are 10^10 possible phone numbers (approximately), it is very easy to build a rainbow table of all hashed phone numbers and back-track a hash to it's phone number.
Phone numbers are not unique values, you should never assume that a phone number alone (or even a phone number and last name) is enough information to uniquely identify an individual. Case in point: I work with a guy who used to work at his dads office. He and his dad both have the same name, and they both had the same office number. This algorithm would incorrectly identify both people as being the same person when…
You are thinking from the point of view of a database administrator, whose job it is to make it easy to uniquely identify an entity.
In security it's about making it as hard as possible to deduce even the slightest of information about a person, increasing the k-anonymity as they say.
For all intents and purposes, that a phone number resolves to only two people, and they're also conveniently located geographically near to each other, and are probably very distinct in a whole range of other things, makes it the perfect key for any security adversary.