He means that the slave out included the output section of the amp. This is so you can take the slave out into a power amp and get the whole tone of the amp (preamp and output tubes) and reamp it with another power amp. Essentially, the amp is acting as a big distortion box this way.
It allows you to get all the fat output tube distortion from the amp without the ear-splitting volume. . .your second power amp can be set very quiet, but you'll be getting the tone of a screaming amp.
(also: in response to your statement about sending the preamp signal to a separate effect, and then power amp. . .in this kind of situation, you'd be able to use a mosfet poweramp, such as the HH V800 to amplify the signal, and you'd still have that output tube tone.)