I'd argue that's "presentation" failure. This is something that can be practiced so as to keep the focus on the product and not on the sloppiness due to lack of preparedness.

I'd argue that you can hand an iPad to your grandmother with severe arthritis or your toddler for the first time and they wouldn't have nearly as much trouble as the presenter in the video.

Why would you give your grandmother a prototype tablet that will never see a production release?

Why would you demo a prototype?

Gee, I don't know...maybe to give the millions of people who are interested in it an idea of what it might be like.

You've got to wonder why Engadget can't invest in a tripod.