OK, be aware the person you're correcting has: competed in CASP (on a competitor team with Sali), and published papers with Baker on Rosetta methods (my paper is cited in the most RoseTTA paper).
"They mix a bit of both -- using homology models to get the fold, and fragment insertion to model the floppy bits."
that's the best description of what I believe AF2 is doing, but that AF2 is being marketed as not depending on any sequence similarity.
If the CASP folks really are saying "if you have 20% sequence identity and use the structure from that alignment it's ab initio"... that's really just totally misleading.
Of course, even ab initio methods are parameterized on biological information; for example, I used AMBER to do MD simulations and many of the force field terms were determined using spectroscopic data from fragments of biological models. That, however is ab initio, because nothing even as large as a single amino acid is parameterized.
I'm not saying there's anything wrong with homology modelling, or that the purist vision of ab initio is right. For practical purposes, exploiting subtle structural information through sequence alignment is a very nice way to save enormous amounts of computer time.