The quote simply demonstrates that no matter what you do - FDA will consider this type of product a drug - you could advertise it as a deadly cousin to a regular cigarette that has no benefit whatsoever and it would still be a drug.
If the Secretary is prohibited from requiring the reduction of nicotine yields of a tobacco product to zero, then it is clear that the presence of nicotine in a tobacco product (regardless of its proportion to the product as a whole)cannot be used as the basis of classifying a tobacco product as a drug under subsection (g)(1) of Section 201. For, if the presence of nicotine in a tobacco product were to render that tobacco product a drug, then not only would virtually all tobacco products be a drug, but Congress would have had no need to "provide authority to the Food and Drug Administration to regulate tobacco products" (as was stated as a purpose of the FSPTC Act, Section 3).
Furthermore, if the presence of nicotine cannot be used as the basis of classifying a tobacco product as a drug, then neither can the presence of nicotine be used as the basis of discerning intent under subsection (g)(1).
Consequently, the only basis of discerning an intent that would render a tobacco product a drug are statements, claims, and representations made by a tobacco product manufacturer, supplier, or retailer.