Yes, he is damning athiests with faint praise. He's done it before. This is nothing for athiests to be impressed by, it's just a backhanded insult.
I am not as worried about what he meant by it as much as I am how people are taking it. It maybe a back hand but a useful one for our side.
Even though he's the head of one of the largest criminal organizations in the history of humanity, there are things about this Pope that I like. I particularly like that he calls out the flock on their hypocrisy.
That said, he's just as delusional as every other believer.