How will the logo appear 90% of the time? Scrubbing to 1:44 seems to give the biggest clue, which indicates that the resultant 'system' is actually a series of font choices and a logo and a system for picking out colors or images which can be used within the confines of the logotype.
Scrubbing back to ~1:30 also indicates that this will also redesign http://www.universityofcalifornia.edu which will likely be a huge improvement over the existing website that appears to have been made at the height of the xhtml+prototype.js zeitgeist.
So no, Cal isn't being rebranded, the nebulous 'UC system' is, which means that the biggest consumers of this logo will be UC applicants & employees along with secondary school juniors and seniors who are receiving either fat packets or skinny envelopes with a UC logo strategically positioned in various parts. Will this logo appear on a diploma? almost certainly not. Will it appear on a paystub or employee badge? probably?
It's frustrating that most people project their fears and worries on a graphic mark but it's even more frustrating that the author ignored the actual identity's presentation.