He's saying that if a stretch of highway has traffic volume of 10 million trips taken on it in a year and an average of 2 deaths per year, that is still much safer than a neighborhood street which sees 10,000 trips per year and averages 1 death per year.
(numbers made up to emphasize a point, a neighborhood street with 1 death per year is pretty obviously unsafe)
Are there suddenly no pedestrians and cyclists on the roads with the cars? A cyclist hitting a pedestrian at 30km/h (fucking fast for a normal cyclist btw) is a rounding error both in terms of how much it happens and how deadly it is compared to a car hitting a pedestrian at 30km/h