TheLazyPeon is new to the game, it is much more complicated than just resetting after few months - but the video would last half an hour if he was to explain everything in detail, and I doubt he took time to learn everything in depth. Veeeeery briefly, the universe is extremely complex - with parts (servers with thousands of players) being removed/replaced from time to time, while some parts / servers are permanent - and even this is very short and skimpy description.
Speaking of combat, it would be good to compare this with some pre-alpha AAAs - problem is that we are often not even aware of their existence in so early phase, not to mention combat footage.
You are right about PvP, the game will have as much PvE as, say, EVE Online. So buyers beware =)
Basically the plan (because right now all what they've got are ideas and a few pieces of terrain stitched together) is to have a few servers running simultaneously, just like in traditionnal MMORPGs, however with some notable differences : 1) most of the maps don't last forever, after a few weeks or months they disappear 2) players can "win" or "lose" a campaign (so technically it's possible to be the winner of a "server") and 3) the information about the characters is shared between all the servers, so players create a character on server A, then move to B with it, then C, and return to A, etc.
We'll see how things evolve, so far what I have seen is not impressive.