What?
I played on the PS3 and he never said anything like that.
He just made random comments about things he likes / dislikes...
Examples:
"M'aiq wishes he had a stick made out of fishies to give to you. Sadly, he does not."
This is a reference to the Fishy Stick fad on the official forums.
"Some people want special bows that take too long to load and need special arrows called bolts. M'aiq thinks they are idiots."
Reference to a heated discussion in the forums that occurred when one of the developers confirmed that neither crossbows nor throwing weapons would be included in the game.
"It is good the people wear clothing. M'aiq wears clothing. Who would want to see M'aiq naked? Sick, sick people. Very sad."
A debate was armed in the forums about if nudity should be in the game or not like it was in Daggerfall -- and in fact, a minor media storm ensued when it was discovered that females in Oblivion can go around bare-chested with a special mod. M'aiq also commented about this in Morrowind. It may also refer to the appearance of naked Khajiit in Morrowind.