I find this explanation perplexing. I'm not disputing it because it is obviously written by someone that knows smart trainers and control software much better than me, but consider this:
My wife uses the same tire at the same pressure on the same smart trainer. She has a different bike, but the same hardware otherwise. She is running the manufacturer's software to control the trainer (Which I seriously dislike). Because of the limitations of the software it can not see the C1 on her bike, only the trainer and her heart rate monitor are connected.
After a 10 minute easy pedal that program pauses and does a spin down calibration. Just like GC 3.5 is doing, only it does it automatically. When it is complete the power being displayed on the computer screen is within a few watts of what is showing on a 920TX coming from a C1 power meter. There are no variations and control is a little sloppy but actually pretty close. The trainer is tracking to the C1. Her power range is much smaller than mine, but between 70 watts and 200 watts there is no drift.
If I put my bike on the trainer and run her program (Rouvy, BTW) it will track to my Quarq Riken perfectly all the way up to 550 watts. At the very top of my power limits the trainer is 10 watts low to the Riken. Again, the actual control is a little sloppy compared to GC 3.5, but it is pretty close.
Again, I'm not disputing what has been explained, but the engineer in me is having problems resolving the conclusions.