This really showcases what I think HTML5 will be great for: procedural/algorithmic content.
I think Flash will still be king until someone creates an authoring tool that can allow artists to easily animate something like this.
Someone go ahead and make that tool, I will buy it.
I'm still looking for a tool that allows people to create animations using canvas, as easily as Flash does for non-coders.
This is at least the second time I've seen the suggestion for an HTML5 authoring tool come up, something that would let designers and animators do what they can do in Flash. Adobe might incorporate HTML 5 as an option into CS at some point, but here, unlike w/ Flash, they don't get to spec out the language that everybody has to use.