that video doesn't prove anything! ok it's C4E, but until a reproducible method to dump the dvdkey is found and released, fake or not this video is just a hype generator. hopefully they'll share some more details about dumping this drive.
if the drive send in some manner the fw to the console, i think this could be exploitable to read the dvd key, so maybe M$ just found a new way to detect LT during live sessions