In particular, he doesn't present the Khan Academy as a full replacement for primary education, but as an enhancement. In the second half of the video, he illustrates the teacher as maximizing the amount of useful interaction between themselves and the students.
Instead of spending class time lecturing and producing examples (things that technology can handle easily, and in some cases better than a human can), teachers use their class time to interact with students individually, helping them better understand the content and meaning behind it. This time becomes even more useful because the application gives statistics on how students are performing, and what directions they're moving in; it arms teachers with better data and more time to use it.
This is a good point that touches on what seems like a communication disconnect. While Khan advocates using it as an enhancement, many in education think it's more than that and use it accordingly (disclaimer: based on my experience, totally anecdotal). Perhaps decision-makers are viewing Khan Academy as THE SOLUTION, which is what the author takes issue with.