Thank you for opening the discussion.
The paragraph of the essay lists the two possibilities, either modify gravity or modify the matter content, because, without additional information, both stand on equal footing next to each other.
Which one is considered "the simplest way" of modification depends on the available evidence, which simplest way is viable. It seems difficult to modify gravity in agreement with all observations we have. But, systematic investigations are ongoing which theory of gravity is consistent with a certain matter content and its dynamics.
Personally, I am agnostic about which model may turn out right, I am more curious about the evidence we can obtain to test the ideas.
I am no expert on Milky Way satellites, so I cannot comment on these measurements. As far as I can read from the ongoing debate between Kroupa et al. and others, the tensions between observations and simulations seem to be resolvable. The standard model could thus explain the properties of the Milky Way satellites.