It's not a false dichotomy because right after the paragraph that you quoted I said:
I personally lean towards thinking they are real, and anyone using these code words in a suspicious way should be investigated no matter how powerful they are.
It's the context that make these words "code words" in the first place. You wouldn't say that any time someone says "cheese pizza" they're talking about human trafficking. I kind of feel like not recognizing that is an exercise in purposeful obtuseness...