A good part of the presentation is a critique of worst-case-analysis, which is often not relevant for practical problems. The author doesn't mention smoothed analysis which addresses this very issue: http://en.wikipedia.org/wiki/Smoothed_analysis
It's unlikely that Sedgewick hadn't heard of this before. I suspect that he didn't mention it simply because it isn't often taught. According to your citation, it was introduced in 2001 which is quite recent in academic terms. How did you come across it?
A list of related papers: http://www.cs.yale.edu/homes/spielman/SmoothedAnalysis/index...