Your analysis strikes me as a bit glib.
There are two critical pieces to this issue and I think it is important we distinguish between the two. The first part (which is what you are trying to get at) is that the prospect of warfare being conducted through a video-game like interface is scary and feels wrong. I agree and I get a sick feeling in the pit of my stomach just thinking about it. Imagine soldiers driving to work in the morning from their homes in the suburbs, putting in a 9-5 day piloting a drone killing insurgents, and then going home to their families in time for dinner. Very scary.
However, the second part is what you miss. These military personnel are kids. Kids that we ask to conduct a large scale invasion and then engage in the near-impossible task of nation building. As Thomas Barnett says, the same 19 year old just can't do it all. These kids should have been out of Iraq after we captured Saddam. They aren't psychologically equipped to deal with a country post-invasion. This video is a perfect example of that. Notice how the kid mistakes a camera for a weapon and is extremely jumpy when he is trying to figure out whether he is being shot at. He's never been trained to deal with this kind of situation (urban warfare, enemies without uniforms, civilians intermixed with soldiers) and it's criminal we force teenagers make these kinds of decisions every day.
All of that said, clearly bad decisions were made in this video. I'm not disputing that. But there are two crimes in this video.