Just to clarify, the SEPM can be run on either a guest or a host. Both options work fine, and the choice is up to you. At no point does Chetan say it can only be installed on the host. Merely that you can if you want it there.
In the case of running on a host though, this must be in the form of a full Windows Server installation with the Hyper-V role. You cannot install the SEPM on the standalone Hyper-V machine.
My recommendation, if given the option, would be to stick the SEPM on a guest. This gives you better flexibility for future changes to the environment.