I don't think anyone denies we're all ego-maniacal to some degree.
I have a counterpoint to his 3:1 odds argument that'll wipe some of the smugness off his mug, though.
If you have 3 guys looking to beat you up, and this happens every day, how many days can you expect to beat them up instead? Are you really going to beat them up 1 out of every 4 days? Of course not. Assuming you don't have any special powers over them, you'd have a 50% chance of beating one particular individual. If you have to beat 3 of them, if they come one at a time, and if you never lose any of your ability to fight, you've got a 1 in 8 chance of beating all three of them. But since they're not going to come one at a time, they're going to beat you more often than that, and since you're not likely to still be at full strength after each fight, unless you can find some way to fight them each individually and get an advantage over each of them, you're going to lose every time.
You win that fight by having something they don't. You outsmart them by finding a way to take them on individually, or better yet get them to fight each other. You overpower them by having a weapon and the training to use it. You overwhelm them by having a gun when they don't, plus the range to use it before they can get close enough to hurt you.
In a battle, there's a lot going on, and generally you need 6:1 odds to be assured of victory, with things like better supply, better weapons, and total surprise making up a large percentage of that. If you can wipe out half the enemy before they can even fight back, you've just doubled your strength and therefore your odds.
But in a war, you'll see the same dynamic as the street fight. Against three contestants with the same power as the loner, the loner will lose nearly all the time. So you have to change the situation. Fight on terrain that favors you, have better weapons, have superweapons, get the enemy to fight amongst himself, and so on.
That's why we expect to win a 3:1 fight. A 3:1 fight is not a 75% odds fight.
The other side of the coin is, I'm the hero of the story. We see heroes overcoming great odds all the time. If I win a 1:3 battle once in a while, I know it's luck, but in the same way that once in a while a goody hut pops a tech, I see it as a gift. If I was winning them all the time, yeah, I'd start to think something was up.
I think it's interesting to note that he said something about how the code now takes into account the results of previous battles so you don't have two high-odds battles losing in a row. This flies in the face of all the defenders of the RNG saying there's nothing in the code that changes the results. WRONG! There's something in the code that makes it so you win more than you should. (Or at least there will be at some point.)
This hate of losing two high-odds battles in a row can also be illustrated a different way. Say you've got a 6-disc CD changer and you load it with 6 different bands, then set the machine to play on random, so it can pick any song out of the 6 discs. At some point, you're going to hear two songs in a row by the same band, and then someone'll complain that the RNG sucks because it's not random enough. Even though there's a 1 in 6 chance of hearing the same band twice in a row, somehow the machine is messed up.
That's like rolling a pair of dice and complaining if you get doubles. No one does that, do they? (Ok, it's actually more like rolling a single die, then rerolling it and getting the same number, and then complaining. There's actually a difference in people's minds.)
I say it's all the more reason to just set up all the battles and then resolve them all at once. As a side-effect, it allows simultaneous play without too much difficulty.
Overall, though, I'd say it was a very informative talk, and everyone should listen to it at least once before they complain about the way a game is made or why everyone hates their great idea.