I really appreciate the effort that has gone into building the demo. But i disagree with you.It is extremely easy for developers to provide fallback content when Flash is not availble.
As a developer, here is why i(personally) wont choose CSS3 animations for building similar content anytime in the near future:
-Works only on webkit browsers
-Performance is really bad on Chrome. Compared to most of the heavy weight flash content out there, this is just a very basic animation.