It was meant mostly in jest, Kevin, but to be serious the "delusional" bit was referring particularly to his claims to have discovered a "cure" for cancer, which he was nevertheless not prepared to reveal to the world. Together with his claims that his own cancer was nothing to do with smoking and substance abuse. Having lost very close relatives to cancer, I think that's utter bullsh!t and, frankly, it annoys me.
As for the original guitar, I don't think anyone is deriding it, or disputing its iconic status. I also don't think that anyone can dispute it's just a guitar made from a bunch of generic parts which, logically, should be no better than any other parts guitar. Unless you believe in magic. It's iconic because of who played it, not because of its intrinsic quality - if he'd played a Tele with Swiss-cheese holes drilled in the body the music would have been no different.
What we are deriding is the fact that Fender/EVH are charging $30,000 for a guitar which is merely a copy of a guitar which cost, what, $500? It's actually totally against the principle of what EVH was doing by building his own guitar in the first place.