"square canvas" = "Quadrat Leinwand"
I am not sure who wrote the Sketch demo, but I thought it was omz. He is German - right? So your theory is likely correct. He was probably just saying that he wanted a square canvas in so that the app would run fine in either portrait or landscape.
I thought it was implying some other feature like scalable or resolution independence. Kind of funny. I have noticed that very few scripts seem to deal with screen size and portrait/landscape. I have been searching for a good one that shows best practice on this since I don't have an iPhone (just and iPad). I am concerned that any scripts that I write will work poorly on the iPhone. Thinking that Pythonista could have a "simulate iPhonex/iPadx" mode or something.