Given that the consistency of a system can be proven outside of the given formal system, Gödel says,
It must be noted that proposition XI... represents no contradiction to the formalities viewpoint of Hilbert....
Why do others disagree?
Who cares whether a system cannot prove its own consistency? Why would we expect such a thing?
Is it possible that a theory without multiplication, but with some other axiom or axioms (i.e., weaker in one sense but stronger in another) could prove P consistent and itself consistent?
Hilbert's program aimed at "solving" the foundational issues (form Cantor and Frege, to Russell and Brouwer) proving the consistency of the "main" mathematical theories, like arithmetic, real analysis and set theory.
In order to prove that, the program developed concepts and tools of metamathematics, i.e. the discipline based on mathematical logic able to study the mathematical theories as mathematical objcets themselves.
This metamathematical activity has to be "performed" into a "secure" mathematical theory: the "elementary" part of arithmetic.
This theory must supply the tools sufficient for the consistency proof of other theories.
Of course, this "gound-level" mathematical theory must be itself consistent.
Unfortunately, Gödel's Second Incompleteness Theorem shows that a formalized arithmetical theory having "enough resources" (this concept is made precise by the theorem) to be suitable for the metamatheatical aims is not able to prove its own consistency, and neither the consistency of "more powerful" theories like real analysis and set theory.
Regarding Gödel's comment after Th.XI :
And this was exactly what happened with Gentzen's consistency proof.
Some comments are useful here :
Hilbert's concept of finitary is not precise: but it's hard to escape from the expectation that the "finitary part" of arithmetic must include $\mathsf{PA}$; thus, G's Th applies.
Gentzen's proof is hardly "finitistic".
the original aim of Hilbert's program was to "convince" intuitionstic mathematicians that axiomatized set theory was "secure"; if so, any "ostensive" consistency proof based on a model of, e.g. arithmetic, built up into set theory was clearly useless.
Added
Regarding your added question, you can see (in general) :
In particular, you can see the overview of Presburger's arithmetic for a (very weak) first-order theory of the natural numbers with addition, without multiplication.
This theory is complete and decidable; thus, it "eludes" G's First Th.
Unfortunately, without multiplication it has not enough resources to implement the arithmetization of syntax; thus, it is unable to "perform" the basic metamathematical tasks and so it cannot prove relevant metamathemetical properties, like consistency of a theory (and neither of itself).
Gentzen's consistency proof "eludes" in some way G's Second Th :