Striking examples where Kohn-Sham orbitals clearly have no physical meaning
When people say that Kohn-Sham orbitals bear no physical meaning, they mean it in the sense that nobody has proved mathematically that they mean anything. However, it has been empirically observed that many times, Kohn-Sham orbitals often do look very much like Hartree-Fock orbitals, which do have accepted physical interpretations in molecular orbital theory. In fact, the reference in the OP lends evidence to precisely this latter viewpoint.

To say that orbitals are "good" or "bad" is not really that meaningful in the first place. A basic fact that can be found in any electronic structure textbook is that in theories that use determinantal wavefunctions such as Hartree-Fock theory or Kohn-Sham DFT, the occupied orbitals form an invariant subspace in that any (unitary) rotation can be applied to the collection of occupied orbitals while leaving the overall density matrix unchanged. Since any observable you would care to construct is a functional of the density matrix in SCF theories, this means that individuals orbitals themselves aren't physical observables, and therefore interpretations of any orbitals should always be undertaken with caution.

Even the premise of this question is not quite true. The energies of Kohn-Sham orbitals are known to correspond to ionization energies and electron affinities of the true electronic system due to Janak's theorem, which is the DFT analogue of Koopmans' theorem. It would be exceedingly strange if the eigenvalues were meaningful while their corresponding eigenvectors were completely meaningless.