Yes, it's humorous, but it's also an exaggerated example of what is so common in the martial arts world - ego. I'd imagine many watching this video have personally experienced something similar to the things happening here.
I posted on Claire Berlinski's Learning to fight blog a few weeks ago:
McDojo types are the only truly fraudulent ones and those are easy to spot. The rest of it is just a lot of misunderstanding and ego. It is a world full of testosterone-filled individuals who train to fight, but never actually get the fight out of them. And the ones who do fight competitively are in a completely different world.
The remedy for this is choosing a good school and instructor. Be vigilant. Avoid asshole instructors. Avoid asshole students too, they can hurt you just as much as an instructor can. A good instructor tames or gets rid of asshole students.
Stay safe and Happy New Year.