He said that game developers and publishers seem eager to be "first to be second." That is, they have no interest in creating anything genuinely new. They just want to capitalize on ideas that have already been proven. His hope is that Lively will lower the barrier to entry so would-be developers ("passionate startups and kids in college") can experiment with new ideas with less risk.
So far, the aspects of Google's vision for Lively as a game development platform that we've seen have looked like a greatly scaled back, poor man's version of MetaPlace; just the tools for creating simple arcade-like games, without any of the loftier purpose. But Hanna's comments suggest that at least some folks on the Lively team have grander ambitions after all.