I think that there is some merit on his reasoning, when it comes to the skin fauna and bacteria. However soap is not there just for disinfection, it's also to remove grime, as it makes oily grime soluble. And with or without capitalism, you don't want to be grimy.
Also, the body odour part screams "appeal to nature" from a distance. Sure, we are animals; and sure, we produce body odour naturally. However that does not mean that body odour is desirable.