And as we've seen earlier in this thread, people can get confused as too whether it is D1 or D2 that is component or composite, and I've got to wonder if, when Desire Gonzalez wrote that article, if the person they were interviewing said D1 by mistake when the really meant D2. The whole point with those two paragraphs is that TNG had moved from doing it's SFX in analog to doing them in digital.
But, also on the sidebar, and in the article, it's just talking about the Special Effects (ship shots, phaser shots, etc.) being done on digital tape. It is not talking about what the final master, containing all the live-action and SFX shots, was. It just says that the Edit master was on D1.
As well, even with the Edit master being on a digital format doesn't mean that the Editor could not have Edited the entire show, live-action and SFX, onto Betacam SP (which is also component, just analog).