No, John is saying past sins. If you read what he actually says about he reborn state, he clearly says we no longer sin...clearly. No question about it. Do yourself a favor and stop trying with all your might at watering down the very power of what Jesus did for us because you are making a fool of yourself and so are the others.
You are correct. That is the way I was taught it too. When the Holy Spirit comes in .. all sin goes out. Sin cannot stand in the presence of the Holy Spirit.
People can still do stupid stuff, but the “sin nature” is gone.
Thus sprack masters minion eh? John is speaking to believers and is using inclusive language throughout. Study the bible fabie - you might learn something.