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In the discussion, the speaker critiques the term "branding" when used in conjunction with "identity," asserting that it often exaggerates the importance of identity design. They argue that the focus should be on effective elements like strategy, positioning, product development, user experience, and customer service to truly embody branding. The speaker references a professor from Art Center, emphasizing the distinction between identity design and branding, warning against misleading claims of comprehensive branding when only identity design is being done. They mention that some successful companies focus solely on identity design, implying that brand identity lacks substantial value and that confidence should stem from internal beliefs rather than external branding perceptions.