No, it's a bit different than what I had assumed. I had sort of thought that when he said items in the menu he meant like you have there - usable items.
What he actually meant was that it is an option in the menu, like a journal. So, if someone were to give you a quest, but the player had to go do the laundry or something at the moment. He could go into this option, type in "I have to go to the town to retrieve an egg from the farmer", then leave the game. And when he came back, he could look at what he is written to remind himself of what he had to do. Or if he was doing a complicated puzzle or something. So he meant more like an annotated journal then what you and I had assumed.