I only watched the first half of the video, but I can say with a pretty high level of confidence that just about everything I saw is achievable now. Cost is a different matter but like everything else, I imagine that it would drop relatively rapidly once introduced and widespread adoption begins.
Microsoft is in big trouble IMO. Windows 8 being available for ARM is a step in the right direction but like previous MS efforts in the mobile and tablet market, I'm going to guess that it won't be adequate or see widespread adoption. Look at the embarrassing pummeling they've been taking in the smartphone market for years.
They've been taking that beating because truly never had a focused direction in that market. And if Microsoft's mobile arm fails entirely, well, so what? In the market, it's just another competitor, and for Microsoft themselves, it's only small product lineup, and dropping that market would barely hurt them.
Windows Mobile used to basically be all about trying to make a mobile experience that felt like you were using Windows. And so that in of itself kind of took off, with it's own class of mobile devices (UPMCs anyone?) as users looked for the Windows experience on the go.
And then we all realized what a terrible idea that really is. Windows is great... on a computer. Handheld computer? Make it perform differently, thanks.
Windows Mobile 6 was fun to tinker with, but overall was ugh. That and it wasn't developed for capacitive touch, though some tweaks with 6.5 tried to correct that.
Windows Phone 7 is a nice and different approach, a whole new direction. Will it ultimately get them the marketshare they are fighting for? Not sure.