I think you'l find that David's speaking of music in church as more like a performance and concert then an act of worship. If you take a look at the Times Square Church you can see they get really into their music, and with right reason, like you have mentioned. I think Dave speaks of something along the lines of Malachi chapter one. The action of worship is there, but the heart is not in the worship, and so it does not bring God glory.
Not trying to defend him necessarily, thats just what I believe he's speaking of.