I think he means it sounds shit in a good way. It's some sort of weird Americanism to say the opposite - slang if you like.
That car is shit hot.
That TV is the shit
It does not, obviously, mean that the car is rubbish or at a high temperature, nor that the TV in question is moulded from faeces. It's just a way of making stupid people look less stupid by 'allowing' them to put random words in random orders to convey basic human emotions.
Personally, I don't know why people can't just say "that is very good, sir" or "I am terribly sorry, sir, but I couldn't help noticing a few small oversights".