Admiral Hopper's lecture wasn't delivered too long after 1976, which saw the release of both the CRAY-1 (single CPU) and the ILLIAC IV (parallel). ILLIAC IV, being more expensive, harder to use, and slower than the CRAY-1, was a promising hint at future possibility, but not particularly successful. Cray's quip on this subject was (paraphrasing) that he'd rather plow a field with one strong ox than $bignum chickens. Admiral Hopper was presumably responding to that.
What they both seem to miss is that the best tool for the job depends on both the job and the available tools. And they both seem to be completely missing that, if you know what you're doing, scale up and scale out are complementary: first you scale up the individual nodes as much as is practical, and then you start to scale out once scale up loses steam.