It sounds like it's saying people's desires distort their perceptions and influence their reaction to hearing the Dhamma. Those who love being reject it and those who hate being go too far with the idea of non-self.
To me, the second view sounds like seeing unsatisfactoriness & suffering in life; like being disillusioned by life; being disenchanted towards life; to the point of feeling death will bring an end to it all; i.e., bring peace. It sounds like to see & feel unsatisfactoriness & suffering deeply but to also not see & not know how to overcome that suffering & burdensomeness in the here-&-now.