Hmm. Well, this is New York - I have never personally seen traffic that dense in Ottawa (save for one or two freeways), nor driving that bad and aggressive. Of course the clips, and interviews, have been picked for effect, I don't for a minute assume that this was meant to be a fair and impartial representation. (Reminded me a bit of downtown Montreal, though.)
A network of pathways is a great idea. Bike lanes can work well. Separated bike lanes strike me as having the potential to be the worse of both, and I agree with the comment above that the video shows few solutions for intersections. However, that being said, separated bile lanes could be an option for certain busy roads, when conditions make them particularly difficult for cyclists. One of the best messages from that video is to have a range or designs and potential solutions for a city to look at.
What struck me most about this video, however, is that nearly every problem identified was due not to bad road design, but due to irresponsible and illegal driving. If people can not be trusted to operate a vehicle responsibly, then they need to be educated, fined, and/or lose their driving privileges. What I heard on this video was, "well, gee, people break the laws, and we can't do anything but ignore and accept that". That's an attitude I see too often these days, governments seem willing to do anything except actually enforce laws.