I think it would make the point much clearer if the author of that article would actually explain a use case for this (apparently incorrectly handled) syntax which I have never ever come in contact with :).
2) Just because you didn't come in contact with ordinal dates doesn't mean others don't need it.
3) The article has a link to https://en.wikipedia.org/wiki/Ordinal_date. The wiki page doesn't have any specific use cases but just use your imagination.
It's not perfect, but no implementation will ever be imho.
YYYY-MM is year-month, not year-day365. It's not very reasonable to interpret yyyy-mm as year-day365 in a function called iso8601 when the standard says that's not how to interpret it.
Parsing it incorrectly is bad news.