Are you even treading the territory of trying to imply msr researchers are trying to mislead and aren't smart . Maybe the video is misleading but let me assure you msr has some of the brightest minds on the planet. On a r and d scale on algorithms and comp sci far superior to sony or any other gaming company
Indeed. I am lucky enough to be able to attend MSR seminars on a regular basis and they are usually far beyond most other research groups in many fields (machine learning, depth imaging, computer graphics), be it in industry or academia. They do fundamental research that sometimes have tangential commercial applications (e.g. advances in decision trees classifiers and depth imaging --> KINECT).
Rest assured that all the arguments that you guys bring up in this thread were considered by the research team. This was presented at seminars and conferences, with the brightest minds in the field trying to find flaws in their methodology. Of course it is not perfect or generalisable to all situations. This is fundamental research, and only a small piece of the puzzle.