I watched that yesterday.
Quite an interesting video. SonOfEtro is right in that such info should be taken with a grain of salt.
I do understand the disappointment since the potential as described within sounded phenomenal. And coming from Peasant himself, who is a huge fan, it goes to show that even the most hardcore fans can see issues with the story.
If I recall correctly, Tabata and the team at Square know who Peasant is and even offered to send him an early copy of the game (to which he refused because he wanted to play the game live for his subscribers)
I have a feeling Square will catch wind of this video and give it a watch. Gives us a lot to ponder over.
However this still leaves the problem of people having unrealistic expectations upon Square for what to add.
Since the game is already out, they can only add or extend scenes as opposed to redoing scenes completely. It would make sense for some things (such as the Red Moon and Tenebrae) to be rewritten again to fit with what is in the final disc version of the game.
Once we get to Tenebrae, the city is already burning. I don't think they can make it so that the city is fine when we arrive since the former has already been established.