If I didn't know better, I would have thought the video was an April Fools' joke.
Overloads: readily addressed by putting a fuse in the plug.
Arcing: The AFCI is already required. Plus, shielded 'safety' cords are already on the market, and can be found at any Wal-Mart.
Kiddies sticking fingers in the socket: Already addressed by "child proof" receptacles.
The statistical assertions are completely unsupported; the necessary data doesn't exist, and the studies we do have point to other factors.
The opening artwork of extension cords, etc., is exactly the same artwork used by Cutler-Hammer in the pre-1999 pitch for the AFCI. Remember the AFCI device?
Not only does this widget 'save the children,' it 'saves the environment' as well! Just let Big Brother follow behind you and decide whether you really need to have that light on.
Not content to make you replace every receptacle, this thing would also require you to replace every appliance. Yea, that'll save resources.
Finally, it has patents! "Patents" are simply a legal monopoly. While protecting intellectual property has some value, to follow this with a government fiat - and such would be an absolute necessity for this idea to work - is an example of the worst form of corruption.
That sales pitch is full of feel-good sentiments, buzzwords, and cant. Either a road to Hell paved with good intentions, or a cynical appeal to the useful idiots of whom Lenin spoke. Take your pick.
