He means a shafted motor versus a hub motor.
It all depends what you're looking for. Either kind can use regen braking, but only at the penalty of not being able coast freely. A shafted motor allows you to change ratios and speeds easily, but brings with it the adjustment, noise, and maintenance of a chain or belt. The weight of a hub motor will always be in the wheel, which reduces the effectiveness mechanical suspension. On the other hand, it frees up spaces in the bike to carry batteries and electronics.
Efficiency can be good (more than 80%) or not very good (less than 70%) for either type. A shafted motor can be lighter. A hub motor is almost always simpler and easier to install.