I did read your post and watch your video. It's an interesting idea.
FWIW, if you had an interface like that to generate a quick template as a starting point for a privacy policy, which I could then download to customise for my own business needs, and it was available for a modest fee per use, then that would be interesting.
However, I wouldn't be interested in any sort of ongoing relationship/subscription deal. I'd see this as a one-off job. If the service were cheap/easy enough, it's a one-off job I might come back to do again for any new sites or policy updates later, though.
The result would absolutely have to be some sort of text document or HTML+CSS package that I could download and modify myself, not a link back to your site. This policy has legal implications in Europe, as I'm sure you're aware, and having it hosted by third parties so my users are seeing something beyond my direct control would be a deal-breaker.
The UI itself looks very clean and easy to use, if you could only fix the lag/endless spinners that seem to come up all the time. To me, those would make it painful to come back and use over and over again, even if I used it once to get a starting point for my first privacy policy.
I stand by my earlier view of your launch process, though: This sort of service could have value I would pay for if it were relatively cheap (compared to my time and any legal fees it saves) and something I could just use instantly when I needed it. However, there's no way I would mess around waiting for it, and all that silliness with forced viral marketing looks like a social experiment rather than a service that's there to benefit me as a paying customer. Perhaps you've decided that this doesn't matter if you're not planning to continue with that approach once you've launched and are open to everyone?