This. “Good” can refer to either a two-place function ‘goodness(action, goal_system)’ (though the second argument can be implicit in the context) or to the one-place function you get when you curry the second argument of the former to something like ‘life, consciousness, etc., etc. etc.’. EY is talking specifically about the latter, but he isn't terribly clear about that.

EDIT: BTW, the antonym of the former is usually “bad”, whereas the antonym of the latter is usually “evil”.

EDIT 2: A third meaning is the two-place function with the second argument curried to the speaker's terminal values, so that I could say “good” to mean ‘good for life, consciousness, etc.’ and Clippy could say “good” to mean ‘good for making paperclips’, and this doesn't mean one of us is mistaken about what “good” means, any more than the fact that we use “here” to refer to different places means one of us is mistaken about what “here” means.