LSA[1] has been around since the 80s and is used in many applications from GRE testing to Apple's junk mail filtering[2]. It's used a lot since the patent expired, it's relatively good and can be computed quickly. Of course, a lot of text-retrieval research has happened in the past few decades, one of my favorites being LDA[3] which relies on a much more sound statistical basis than finding lower-dimensional representations of term-document vectors. Unfortunately LDA's model is not directly computable and answers must be determined via Monte-Carlo methods.
As for 'indepdendence,' his terminology gets a little confused here. At first I thought he was talking about the 'bag-of-words' assumption that most large-scale language models have. These effectively ignore grammar (other than stemming) in order to efficiently determine the 'gist' of a document without its intricacies. However, his videos imply he is talking about word-sense disambiguation[4], which is certainly known about and was the crux of LSA in the first place. If he is talking about lifting the bag-of-words assumption, there has been some interesting work going on, such as [5] (disclaimer: I am a coauthor on that paper).
If you're interested in this stuff, I highly recommend trying out the LSA demo server at [6] (it can get swamped sometimes so don't kill it) and David Blei's LDA implementation at [7]. The LDA-C inputs and parameters are a little obtuse when you first look at it, and I don't have my notes on how to use it at the moment but if you play around with it it should make sense.
This kid is crazy smart, and I hope he gets exposed to a lot of really cool research since he can obviously pull off a lot at a young age. Best of luck to him.
[1] http://en.wikipedia.org/wiki/Latent_semantic_analysis
[2] http://developer.apple.com/library/mac/#samplecode/LSMSmartC...
[3] http://en.wikipedia.org/wiki/Latent_Dirichlet_allocation
[4] http://en.wikipedia.org/wiki/Word-sense_disambiguation