I want to reference a part of the title: "horrifyingly innovative". I can't really agree. Since I program my goal was always to keep the programming away from the user and just let him do what he wants to without always being interrupted by the need of editing code. Games especially are long since working that way (like other cars in a racing game actually reacting directly to the player's decisions, npc in an rpg having their day to day routine that can and will be influenced by the player's behavior, etc.)
But this is also true outside of games. Most prominent example in this community is Spriter. Another example is Sculptris for the 3D world. They all have the same goal: direct interaction with an art object, direct manipulation of an art object, taking away the coding from the user.
Still, it's an interesting video, of course.