I do wonder sometimes if, due to so much chi-sau, we get into the habit of "playing a game of tag" where we're not hitting at the right range, or learning to hit effectively (relaxing, and extending through the target). Our most basic tools are by far the most important, and yet we tend to neglect really giving them the attention they deserve. Of these, there's certainly no tool more important than the punch.
The other good point he made was learning not to be afraid of taking hits. This is something that I think most traditional martial artists are lacking in; in comparison to say, boxers, who are learning how to hit, and get hit from the start. Without learning this, I think we get far too focused on chasing our opponents hands and "not getting hit" than hitting our opponent instead.
These are both big areas that I feel I am lacking in, at least. Boxing isn't really my thing, but I have been considered taking it up just to learn these aspects of combat.
By the way, I have to agree with Takai's observation about the way those students were hitting. It was a bit odd to me. While I realize they were probably just focusing on relaxation more than form, they were chambering their fists, swinging their arms with their elbows out, and doing some other blunt circular strikes at times. Their structure just didn't seem to be there.