What you saw was just a show run by the North Korean government to further their own agenda. The people that you saw are the people that Koryo Tours (and by extension the government) wants you to see.
Make no mistake, the vast majority of North Korea is a giant interment camp. This is more like what you would see if you were to go off the shiny beaten track that Koryo tours makes you follow: http://www.liveleak.com/view?i=1dd_1364601643