I was thinking of doing the same long ago when that video came out.
But another good alternative is to just get older netbook. Eee PC 900 16G, when I bought mine in 2008 it was really cool, and still does keep up with lightweight lubuntu/xubuntu. Does more things with its Celeron 900Mhz, already has everything built in. When I think of everything, flash ssd (really slow one around sdcard grade), wlan card, good keyboard, webcam built in, lots of accessories available cheaply (huge aftermarket battery), spare parts available. I've seen EEE PC 900 available for around 50€ or less used. Mine has 9 inch matte display which still is ways better than some modern supermarket "home media" laptops.
Ofcourse Raspberry has it's hardware decoding for video and stuff. And all these cool little interface add on boards. But if I wanted a netbook I would just get a proper netbook. For just dicking around, raspberry beats netbook ofcourse. But small things for raspberry pi really start to add up. When you're done that 35$ has atleast doubled if not tripled. In my country buying raspberry pi off the self costs around 47€ just bare 512MB model B.