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I figured the title just came from the dream he had in the beginning of the first episode, given that he was saying that exact sentence when his alarm went off and he woke up. Presented with the cute moe-moe little sister in the dream he insisted that HIS sister could not possibly be that cute. It shows that his personal view of Kirino is very different from what he considers to be the "moe imouto" character type.
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