I initially read it as an allusion to Panpsychism:

the view that mind or soul... is a universal feature of all things

or maybe to a generic pan-x-ism. But, in retrospect, the position that "all pebbles are magical to start with" should be called "panmagism" or something. Panpebblism means that there is a pebble in everything (or everyone). So I am no longer sure what Eliezer meant.