No, he's saying it should be illegal to keep things like mental instability and dangerous suicidal mindsets secret from the state when the state is what licenses you to be entrusted, day-in, day-out, with the lives of hundreds of people. If you've got mental problems, don't look for a job where that is by definition a disqualifier. It appears this German guy knew that, and was hiding his problems from his employer and the regulatory agencies that license his operation of giant passenger aircraft.
Except if that was truly the case, the economy would take a nosedive - approximately 1/3rd of people are suffering from mental illness (typically depression) at any point in time.
In fact, depression that's treatable is no longer a disqualifying factor - the FAA has just recently allowed a whole pile of antidepressants as safe to take without grounding.
This was done because guess what? Pilots WERE hiding mental illness from the FAA because it was, until recently, a grounding factor.
Truth is, mental illness is wildly under-reported - it's not seen as either a "real" illness, or they think you're headed to the rubber room - depression, etc., are all seen as "just man up, suck it up and get on with it".
So yeah, that's sort of why mental illnesses are problematic - no pilot wants to be associated with straightjackets, rubber rooms, short buses, electroshock, etc., so they're not likely to want to report it, nor take (until recently) medicine that grounds you. Plus well, the whole "man up and be happy" attitude prevails.