Not exactly. When you talk about a percentage of improvement to an existing state, you are making the assumption that your baseline state (i.e., before the fancy-Dan cable) represents 100%. So he doesn't have to define 100% smoothness in any absolute sense. All he has to do is define his baseline 100% smoothness as all the smoothness he had before he switched cables. It's 100% of what he had, not 100% of all there could ever be.
And a 50% *improvement* actually represents a ratio of 3:2 with respect to the preexisting state--not 2:1 or 1:2--because if you have a 50% improvement on 100%, that gives you 150%, and 150:100 = 3:2. Similarly, a 25% improvement represents a ratio of 5:4 in relation to the baseline state.
However, I don't actually believe in this 1% difference in this particular test, anyway....