Very cool! I think part of why this felt believable enough for me is the compressed / low-quality video presented in an interface we're all familiar with -- it helps gloss over visual artifacts that would otherwise set off alarm bells at higher resolution. Kinda reminds me of how Unreal Engine 5 / Unity 6 demos look really good at 1440p / 4k @ 40-60 fps on a decent monitor, but absolutely blast my brain into pieces at 480p @ very high fps on a CRT. Things just gloss over in the best ways at lower resolutions + analog and trick my mind into thinking they may as well be real.
Ditto, we've actually seen this across the board with video. Even with real human recorded video. The 720p-ish resolutions consistently have the best results as they're the most relatable/natural.