Or they're only interested in people/peasants willing to jump through the hoops of impersonal processes. Depends on the level of the role in my view. Using that as a screening mechanism for a senior/exec role where dealing with people is actually far more important than technical skills will lose them a lot of good candidates right off the bat.
For me that process would be a major red flag and highly likely a "no" straight away. I would certainly want to know how long they would keep the video, both when you got the job and also didn't.
you seem too focused on a few false negatives. The process is designed to maximize the pool of suitable candidates by weeding out as many true negatives in an objective fashion that doesn't discriminate.