Interesting thing about AZ is that he constantly switches sides and say useless things that everyone would agree with so naturally everyone thinks he's a genius with inside source
Could D2 use a new engine? Of course, every live service does, meanwhile most live service with the size of destiny runs on older engines, that tech difficulty card is burnt, and every time they pull this card is when they try to justify dcv and sunsetting, so did the article AZ credited in his video, and if Bungie refuses to explain in detail how their engine is limiting the content size, not even back when they try to delete years of content, then sorry this excuse is of low credibility
All before we talk about the reality that bungie is working on multiple new titles with sony and NetEase, some of which confirmed to be using the same tiger engine
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D2 is run as a live service game but was never intended or designed for it. Bungie have said precisely this. They should have made a D3 as a live service with a modular design but instead decided to diversify with other titles and run D2 till it dies of old age whilst milking it dry. The jury is still out on if that was a wise call or not.