I think he's spot on in terms of the mental side, and the mindset you need to have. My school works on that some, on getting the fear out of you so you can focus on what you're doing and not panic. Definitely an important aspect of training.
What he demonstrates also reinforces how you should never let someone into your space, and you need to have your hands between you and a stranger at all times. You don't have to have some guard up or anything (no reason to antagonize people unnecessarily), but there are alternatives. I for one use a default that looks sort of like Mr. Burns hands. It's not needlessly aggressive, but it's there, and it does help to make clear IMO that you're not going to be taken unawares.
Technique-wise, to me they put waaay too much emphasis on grappling (I'm against grappling in a self-defense context overall). You're just hoping that you get get the leverage, while giving the other person time to deal with what you're doing. To say nothing of how hard grappling is on something other than mats. And don't forget the attacker's friend who is kicking your head in while you're rolling around with his buddy.