I humbly disagree. Any amount of intention of Kovod Shabbos is in itself a meritorious act. The fact that one enjoys himself too, is HaShem’s great kindness, he lets us eat the cake too. And enjoy ourselves!! But Kavod Shabbos it is!!
Nothing is “beyond the level” of doing HaShem’s mitzvohs. (would he say he’s not on the level of putting on tefillin?)
And I think that saying, yes – verbally saying out “Lekavod Shabbos” is important. You may not have to SHOUT, but saying it creates the spiritual essence it was intended to. Mere thinking, while to a degree potent, is not as powerful as going verbal. (never heard of that story, maybe because he only thought it)