The problem with this folklore story is that it is trying to nail jelly to the wall by arguing about the size of quantum corrections in the presence of
renormalization freedom.
The fact of the matter is that the space of renormalization choices is an affine space (i.e. like a vector space, but with no origin singled out) which means first of all that there is no absolute concept of "size" of a quantum correction. This only appears once one fixes a
renormalization scheme, which is like a choice of coordinate chart. It has no physical meaning. Even if we fix a renormalization scheme (which is implicitly assumed in discussions such as you quote) then it still remains a fact that there is an arbitrary freedom in choosing renormalization constants, large or not.
In conclusion, to make progress on these kinds of matters, one needs more theoretical input than just low energy effective
perturbative quantum field theory with its arbitrary renormalization freedom, or otherwise one is going in circles forever. As
Kane 17 points out, "we should look harder for a theory that does provide a UV-completion".
Notice how the solution of the hierarchy problem observed by
Acharya-Kane-Kumar 12, section V.A.2 (p. 10-11) deals with this issue: They invoke a UV-completion that goes beyond perturbation theory. In that theory one knows 1) that the superpotential is
protected against perturbative renormalization freedom and 2) the form of the
non-perturbative corrections is known. Namely these are exponentials in the inverse coupling. This yields the exponential hierarchy that is to be explained.
You see, this works not by long story-telling and analogies and showing colorful pictures, but by a logical deduction from a theoretical framework.
(Not fully mathematically rigorous, but fairly solid by the standards of phenomenology.)