The cosmic radiation alone poses a major problem, let alone the logistics of supplying water/air/food. I am much more optimistic for a research outpost on Luna.
Though the person you commented on didn't refer to habitation specifically I think, just humans on the surface.
I tend to agree with your thoughts on the moon. Realistically we should be looking at orbital manufacturing and refuelling in our local neighbourhood first and use Luna as a staging area for any deeper missions, of which I feel there's far more interesting features to look at (i.e. Titan, Europa etc)