Unless they invent a full-scale keyboard that can plug into a 360 controller port, I'd wager they're just blowing smoke. I don't know squat about mods, but people who do know about mods say that the creation kit is a very in-depth, complex tool. There's no way such a thing is feasibly controlled with two little thumbsticks.
That said, there should be a keyboard designed for use with the 360.
My Playstation works with any USB keyboard.

As for a full Creation Kit on consoles? There's no way in hell that our hardware will run it properly, but I could see some CK-made mods being imported to consoles, a la Portal 2's level editor. Actually, this would be a massive boon for console gamers, and I hope Sony and MS let it happen.