It's clear that narrative is an important part of video games and something that the audience deeply relates to. However, the strengths of interactive media are player participation, the ability to experience content in different ways on different playthroughs and the fact that the content is not static. It's time for narrative to deeply embrace these elements.
I found it quite an interesting watch, but nothing revolutionary, it feels like the system he's talking about is pretty much already in games like Fallout / Skyrim.