Sam, that Tosafos has two parts. First he addresses the fact that they mention G-d together with their saints, which is the Issur of Shituf. Then he mentions the issue that when they say the Sheim they mean Davar Acher.
To the first issue he says it’s not a problem, and to the second he says that their Kavana is to the Osei Shamayim Va’aretz, whatever that means to them.