Imagine you go to a foreign country. You want to buy a train ticket. You walk to the station and go to the ticket machine. You see a dizzying array of levers, buttons, sliders, and dials. Each labelled with diagrams which don't make sense to you.
You back away slowly from the machine and try to find a human ticket seller.
Even if they were talking about interaction design (sometimes called IX) specifically, rather than experience design, the interaction is in handling, moving, and combining them. They don’t need to have a dynamic electronic interaction to be interactive. I’m not sure a toy with absolutely no interaction would still be a toy.