I have seen this video before and yes it's very impressive, but this has nothing to do with the need for Blu-Ray regarding games design, nor do I think this is really surprizing for anyone who followed the demoscene for a while. For example the Amiga has been at the forefront of the demoscene for many years producing incredible demos on double density [880kB] discs, the c64 scene has been big as well, they make it a challenge to impress people following the scene by making as impressive as possible demos with as little as possible code and as hardware becomes more powerful such as being able to calculate data faster and hardware offering more features more impressive things can be achieved with such little code.
But that doesn't mean Amiga games didn't expand in size eventually, for example Dune II was on of the first Command & Conquer clones available for any 1MB Amiga from the 80s and was only about 4 MB in total size. Despite the demoscene background and gathered knowledge by much of the Amiga developer community, a later RTS developed by Clickboom for more powerful Amigas called Napalm did indeed take a full CD just like many PC games did at the time, using 650 MBs of storage.
My point being the demos from the 80s, 90s and beyond have not made us stick to double density, high desity diskettes, CDs, etc. Niether does this demo say anything about game developer needs regarding more storage capacity.
