It puts a spin on jobs for interns replacing stacks of resume/cs with videos/apps.

Those are not interns at HyperIsland. Those are students. It is described in the press release.

http://internstore.com/press/press.php

There is no gap, HyperIsland well specifically the students of HyperIsland are touting that they are good enough such that agencies should come to them instead of the other way around and it is as easy as getting an app.

I was not able to see any hidden meaning of cheap / low value in there.