In fact, I think it is entirely possible to have a virtual memory system that never page faults.
For example: The non-paged pool. Also Win32k's shared session data.
I assume he was making the common mistake of confusing "virtual memory" with "swap file", which is so ubiquitous these days that it's rarely worth correcting. It's obviously possible to have virtual memory without page faults, Windows CE for example does it across the board (it doesn't even support swapping).