It is true that replay in the world frame will not handle initial position changes for the shirt. But if the commands are in the frame of the end-effector and the data is object-centric, replay will somewhat generalize.(Please also consider the fact that you are watching the videos that have survived the "should I upload this?" filter.)
The second thing is that large-scale behavior cloning (which is the technique used here), is essentially replay with a little smoothing. Not bad inherently, but just a fact.
My point is that there was an academic contribution made back when the first aloha paper came out and they showed doing BC on low-quality hardware could work, but this is like the 4th paper in a row of sort of the same stuff.
Since this is YC, I'll add - As an academic (physics) turned investor, I would like to see more focus on systems engineering and first-principles thinking. Less PR for the sake of PR. I love robotics and really want to see this stuff take off, but for the right reasons.