"Independent" implies compromise. It implies taking from both sides to arrive at an acceptable solution for most.

Not in the slightest. You're talking about centrists or moderates. (themselves not the same thing either) Independent can be a third path. In fact that's how I took it, so there isn't the implication you see. There are always more than two sides unless you are stuck in a controlled narrative.

For example communists, fascists, or anarcho-capitalists would be types of Independents. By "reforming Libertarian Party" I assumed he meant the Mises Caucus, which isn't borrowing from any "side".

On the practical side I don't agree with him, however. The US election system is corrupt and in bed with the elite clubs of the Ds and Rs. It's not possible for third-parties to win on a grand scale. You have to take over the existing parties, which Trump started.