Yeah that's what they probably mean. I'm not a fan of model magic since it's not very durable at all. Check out Aves Apoxie Sculpt. Same thing, a bit heavier, but durable and you can sand it to a very VERY nice finish. http://www.avesstudio.com/index.php?...chk=1&Itemid=1
I use it a lot in prop work, especially in weapons. I really like the tut you linked, and that's the only thing I'd change up. Good luck to you!
Most of the handle is apoxie sculpt. Blade is bondo. They're very similar.