Generally, they do this when a building fire is being caused by electrical means not easily disconnected from the building, or if a safety hazard would be present by leaving power on to a building. If a condition like the one in the video existed, I'm sure they would go "upstream" of the problem a safe distance and open a cutout. Of course, this is all done only if the power company isn't able to respond in a timely fashion, to minimize the risk to life and property.
These days, I'm sure that solving such a problem would be as easy as calling the distribution office, and having them shut down the neighborhood.
