I’ve not listened to all of this episode yet, but I’ll link to a previous comment in which I respectfully disagree with some of the way that Paul frames these ideas and seems to define “passive” and “active”.
Passive investors still have to choose how to allocate their money and they can (usually in an automatic way) rebalance and reallocate as values change and as they age. I don’t believe that “passive” necessarily means you invest then leave it. That’s perhaps an extreme definition, but maybe not widespread in practice - but still a long way from “active” decision making/investing/trying to buy what is cheap and selling what looks pricey.