oy vey, thanks for the quote.
The way I understood that part was that he believed that Orthodoxy was doomed to fail, and Conservatives would win. This parallels very nicely with the text charn quoted- Extreme Orthodoxy would fade away as it has no attraction for the youth of today.
From charn:(Page 31) So, yes, MO was a new movement created as a response to a problem. The problem: The new world. America. Things will be different there. America is not the place for traditional Torah Orthodoxy. Rav Soloveichik did not believe that he was merely helping a segment of Orthodox Jewry — he held that “the future of Torah in America” depends on following his approach. He held that the “separatist” Orthodox will die out and only YU and MO will survive. He held America was too strong for the real, pure Orthodoxy. Those who insisted on continuing the “old style” Orthodoxy would, he said, be come nothing but tourist attractions and die out eventually.
Now, he admits he was mistaken about the vibrancy of Orthodoxy. I could be mistaken, but it sounds to me like Charn’s quote and this view are integrally related.