No, I'm not one of "those people" :-) My initial reaction was negative because filming yourself a hundred times is a torture. I failed to see what's in it for folks who are looking for jobs and are pretty miserable already.
Your argument is also flawed because you are comparing video clips to interviews like they're going to replace them which they won't.
One can make an argument that this approach will eliminate the need to apply to hundreds of jobs. That would be great, but how? The ratio of resumes/replies is determined not by technology but by applicants/position ratio.
I've exchanged a few emails with Nicolas and he feels confident that the product will make life easier for candidates as well, I really want him to be right/succeed. At least YC companies are using it right: they actually save time for an applicant.
Anyway, I can imagine this video thing taking off, unless there are legal problems. Don't know why, but I think in the uk you are not supposed to include photograps with applications. Perhaps to prevent racism?
It's more a case of being considered inappropriate than legal barriers...a friend of mine recruiting abroad found the idea of attached photos nearly as amusing as the adjacent salary demands.
I think that the video thing will suffer more from being considered a bit odd or time consuming compared with skimming through text, especially for large non-creative employers looking to fill a quota. On the other hand, webcam interviews could start to replace the first-stage phone interview.