Almost all interviewees talked about telling stories.
Yes, it matters for sophisticated film makers and movie critics, but the mass audience, where the most money comes from, do not care. They want to see boobs, special effects and stupidity -- a quick gratification for investing their money ($12 movie tickets) and time spend watching it (Youtube).
Successful Youtube shorts often don't have a complete story, but the most successful will have some kind of narrational structure, particularly when they are longer than one minute. Only DSLR enthusiasts actually watch impressionistic clips like those from Andrew from start to end. I agree with you in general, but cinema goers surely expect a story. Most of them want to know what's coming, so the story doesn't need to be fresh, they wish to be overwhelmed by the FX, emotional stimulation. This is in order, it's the concept of cinema. Art house audience doesn't like too obviously reassuring stories, that's the main difference.
If the exact contest was shot side-by-side with any of the two cameras tested, most audience members are not going to be concerned about what footage is better than another. They do not understand or care about a little noise, burned out highlights or a slight yellow cast.
You don't need to know about the technical background to sense cheapness. A good storyteller might overcome the doubts of an art house audience, but in mainstream cinema, the cheap tricks that make up video clips for youtube don't suffice. Like an Armani suit compared to an 80 £ suit by Marks & Spencer you know it without thinking. You should read Stu Maschwitz'
DV Rebel, where he stresses the importance of signaling
production value. Now, since the subtitle of his guide reads
Killer Action Movies On The Cheap, it can be mimicked. A little noise, burned out highlights or a slight yellow cast are the
technical signs of no budget and must be adressed with care.
What can be said about part two of the shootout is that a very high percentage (in most cases 100) of all the differences can be evened by care. Care is the key. In a big production, a few hundred contributors care about their jobs and deliver professional results. That makes the finished film look phat. But: If you take your time on the set, if you re-light according to the needs of your sensor, and - crucial! - if you
don't care about how forgiving your competitor's camera is and how careless he could give, you have good chances. As we all witnessed.