He is spot on about defenders needing to be good on the ball. You have to be calm when pressed and pass at least ok. Araujo is a liability in this area and if he won't improve, he will not be a sure starter for us.
In CL level, niether our fullbacks, defensive midfielder are good under pressure. They are literally targeted by opposition. Isolation of CB in this issue ain't right, system won't work even if you put a CB with Xavi and Iniesta passing skills because their outlets are awful.
At lower Liga level, they are all good, and even Araujo are serviceable.
So while in vacuum what Xavi said is correct, he is ignoring other factors related to the ream.
With all of that being said, out option as RB as it stands are bad, and Xavi loves his 343 so I get it tbh.
If Azpilicueta joins, he should get that spot and allow Araujo back to CB