Except you're forgetting that this won't be limited to redrawing live action recordings. 3d models, drawings, dozens of things I'm not thinking of could easily be used here as a base to build the animation from. Saying this tech isn't useful because live action isn't fluid and dynamic is such a basic and unrealistic idea of what's actually possible here.

I agree with you. But I think it's not impossible for what he's saying to eventually happen. As long as AI can emulate creativity, people won't know the difference. But I guess AI not needing direction in the areas he's talking about is still a long way off. Maybe.