I don't think you're missing anything. But I think what he meant by "lords and peasants" is the verified account carried very much a "cool kids" type cache with it. You were something special if you were deemed verified by Twitter. And because it did not seem to make any difference on audience size or how long you were established in the space, there are a lot of people who felt left out or excluded because they weren't on the "inside".
With this, if I'm understanding him, he's looking to make it a lot more accessible to more people. I would easily pay $8 per month to have my Footballguys account verified for instance. I'm guessing there will be quite a few folks like me. But that's just a guess.
Where my head is right now is not so much with US- or EU-based business owners who may find a benefit and would be willing to pay for a blue check like yourself. That makes perfect sense to me. I was thinking more along the lines of international figures outside the Western world and the impact this may have.
Note: I am not a regular Twitter user and typically only go there to read something linked elsewhere or to see a very specific topic I am curious about.
I think the most current example is news about what is happening in Ukraine. I would often see linked tweets to reporting on events and I always looked for a blue check to make sure the tweet was coming from a legitimate journalist, especially with so much misinformation out there on Twitter specifically. So even though this $8/month fee for the blue check is supposed to be adjusted by purchasing power, Ukrainian journalists right now could be making very little money and struggling with just basic life needs. So if those journalists cannot afford (or prioritize other necessities over) the fee, they will lose their check and they just sort of meld into the masses of regular users, bots, and misinformation spreaders. This doesn't seem like a great idea to me.
This is also why I am having trouble wrapping my head around how the subscription fees will actually combat the bots, as per Elon. It seems the opposite would be true and also potentially increase the number of people impersonating public figures who choose not to pay for their blue check.