linkbait is content that's provocative or controversial and gets lots of links from being discussed on forums, blogs, social networks etc. cloaking is a black hat technique to show one type of content to search engines and another to human visitors
Link bait is just using luring titles or captions to attract clicks. Cloaking will get you banned from search engines, its when you display something different to search engines than everyone else. Becareful this is not something that search engines like!
link baiting is using any method, white or black hat, to get people to click on your link. Link cloaking is simply making your url into a safer, harder to modify url, for the purpose of saving space (such as using a short url service for twitter) or for the purpose of redirect or to obscure the original source to protect against "link hijacking". Neither one has an implied black or white hat designation. A free ebook could be link bait, and it could be cloaked and redirected to a clickbank product for sale using a url of your choosing. Pretty valid and straightforward stuff. Don't let the shady sounding terms fool you.
ah - you think he's talking about 'LINK cloaking'. In that case, yes, what you say. I thought he meant cloaking in general - page cloaking in other words, which is very definitely BAD NEWS...