From here which summarizes the video a bit:
"This is the furthest (HLX) has ever been. Period," he added. "The game is playable - end to end. Period. [Other HL3/Ep3 projects have] never been that far. And they're optimising, polishing, and they're probably content-locked and if they're not then they're mechanic locked."
"The way Valve is going about that is akin to taking the [AI] Director from Left4Dead 2 and making it significantly more powerful. It's not changing geometry. It's instead changing entity placement, right [... like] doors, physics props, enemies, items. NPCs of any kind." He also disputes claims the story will be procedurally generated.