You can make anything look good in a canned demo, but I'm for anything that will improve virtual keyboards. That example looks pretty staged to find particular, super bad typing strings that android and iOS won't correct, real-world typing is rarely that specifically awful. I find the ipod autocorrect pretty good and unobtrusive, but the software can always improve.
I tried typing that sentence (the correct one, not the gibberish one) and on both android and iOS it nailed it every time, no matter how quickly and inaccurately I tried to type. If I typed that exact gibberish string in though, they couldn't do it, but I think it is a bit of a staged case.