His point about FAQs being out-of-context is completely valid. Every page on CenturyLink's site links to a help page that (IIRC) has a random mishmash of questions about billing, setup, technical support and whatnot. It would be much better to answer billing questions on the billing page and technical questions on the support page, and so forth.
A problem is that a number of users also instinctively look for FAQs to answer any questions. However, in theory your solution is far more elegant and correct.
Fortunately, any well-designed (from a back-end perspective) site should have no problem presenting the relevant information both on the relevant page and on a catch-all FAQ document. This would allow the site to elegantly handle everything properly.
I can agree in that context but the author specifically says "Most users don’t know what FAQ stands for", which I disagree with. But to what you mean, yes, the way FAQ's should be presented may vary, depending on the site.
It definitely depends on your audience but the general non-tech audience probably doesn't know what "FAQ" stands for on average. In fact, most of the things you tech for granted among a tech-savvy audience disappear if you are targeting an audience that includes a non-trivial non-tech segment.
Source: Working at a startup with a wide audience. The email consisting only of the subject line "WHAT IS PASSWORD" was not the least-savvy email received.
This sort of thing is very dependent on a person's age too.
I know a lot of my peers would know what FAQ means and what a password is. Even some of the "less" tech savvy people. But late adopters who are still using 10 year old PCs usually don't know.
Before I hear claims of ageism, it is just a fact that a higher percentage of the older generations don't know how to use computers. It isn't ALL of them but they didn't have the benefit of growing up with computers as a tool, to the point where they become second nature.