Certainly, there are illusions around traditional martial arts , which is highlighted by this Taichi guy's agreement to such fight in the first place. However, the Chinese reaction is not simply a shock reaction (as the title "rattle" implies), but a deep-rooted cultural reaction. Chinese culture is about longterm wellness, which, in a superficial way, is about face/elegance. It is much more important in Chinese culture to gain respect or to save face, which is of long term value (often beyond one's lifetime). Winning a fight by keep pounding a guy on a ground with no obvious defense is the opposite of elegance (elegance is equivalent to civilization in the culture), therefore, Chinese people would feel definitely not right and the reaction is simply to emphasize their value system: winning with no elegance is not winning at all. In fact, it is worse than losing, highlighted in the following events.
In another word, if the Taichi guy beat the MMA guy by in the end hitting the defenseless repeatedly, the Chinese reaction will probably be the same. While the MMA style does emphasize compounding the weakness, it is probably one of the reasons that it is never popular in China.