That's true, and it also doesn't deny infinite other things. I don't think there's any reason to think it will require an internet connection though. None of their other games do. I don't even think you need to be online to play Natural Selection 2, which almost only exists as an online game.
Because they said it was going to follow a live service model. A live service model just means continual updates over time though, which is what Subnautica also did until release. It was bad communication.
Gotta remember, publishers are basically car salesmen. They didn't build the car, they skim over the spec sheets and learn which trims give them the best cut of the profit. They'll say whatever bullshit they want to make a sale - and in a financial report, their target isn't gamers, it's investors.
I don't know man. It was in a financial report, and that is the correct usage of the term but it's come to be associated with some less good things. It's not like he was putting that in a press release talking about the game.