It does not say "earth". It says "the earth". If you dig out the dirt and put something else there it is no longer "the earth" it is in contact with.
In any case, the informational note makes it pretty clear that the foundation has to be in direct contact with the earth, and not sitting on something else.
OTOH, if he can get the inspector to accept the very weak argument that gravel is the same as "the earth", more power to the guy. However, it would probably be simple enough to just pound a couple rods and be compliant. He could still bond the rods to his wire and the rebar if he wanted to.