I think he has a problem with people making up nasty lies about each other.
I never really meant that in particular, more of a "we can't all meet in region x to RP, so this is the reason our RP across the continent makes sense"...but it's actually not a bad idea.
Humans are inclined to gossip and spread rumors about each other. Having a guild for that (which can generate RP) would be a nice way to monitor/manage that kind of popular (if sometimes out of hand) desire.
As to having relations with reality....the best rumors always do.