Sure, it can. And algorithms can do more than one thing. My favorite reverb pedal is the Catlinbread talisman, which only does one thing--plate reverb emulation--but does it really really well. It does exactly what i want it to do, and way better than any other reverb pedal I've ever tried. That might be because it doesn't also have a spring reverb setting, and a hall setting, and etc etc.The point is, a computer can do more than one thing.
You don't need one laptop for your email and another one to play Call Of Duty. The quote implies that each Tone Master amp is a unique circuit that does one thing well, but in reality it's a computer than can run the Twin model just as easily as the Deluxe model. The only reason they don't make a Tone Master than can emulate multiple amps is that they want to sell you multiple amps, not that the infrastructure of the amp is so complex that it can only do one thing at a time.
In the world of digital audio plugins, it's really common to have plugin that just does one thing: one kind of compressor, for example, not all kinds of compressors
I mean swiss army knives are useful, and ok at all the things they do.
So I'd be interested to try it if Fender wanted to come up with a dedicated tweed deluxe TM model.