HD video demonstrated streaming over a light bulb
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More of the problem is that it doesn't work room to room, only line of sight like with a remote control. Could be useful sending to wireless speakers from the media player, if the player is in a different location than the TV for some reason, but in the same room. I suppose it breaks down if you add a second device unless each one grabs its own specific light frequency and you have narrow optical filters able to distinguish between them.
See: http://en.wikipedia.org/wiki/Code_division_multiple_access
If you could cheaply make the lights transmit and receive, and if the data were recoverable at very low illumination, you could employ mesh routing -- there's often quite a bit of overlap from lightbulb to lightbulb.
But you're correct -- answering the LoS problem is significant. This could be very useful in many applications, but it's no silver bullet.
I can see this as a potential technology for sideband data: stream the video over the light, but the control data would still go through WiFi (and then you wouldn't bog down your wifi with torrent downloads)
In this case, and indeed the whole point of the talk, is they're transmitting HD video.
LEDs can go to much higher speeds - but even still, this isn't new. Researchers in Japan and Boston University have been producing demos for years:
http://www.bu.edu/smartlighting/research/smart-light-prototy...
http://www.businessinsider.com/cell-phones-cause-cancer-2011...