Seems there is always this issue. System fails. Systems try to repair themselves. Systems saturate something which stops them from repairing. Systems all loop aggressively bringing it all down.
This has nothing to do specifically with cloud computing. What is mentioned in netflix's case is but the idea (randomly killing a service) can be used in a more traditional architecture aswel.
The part I like the most is that first paragraph, none of whats listed is what the companies do. New Relic - app monitoring. Stack exchange - Online communities. Dot cloud - app deployment.
I get the theory behind the talk and I find the idea funny. I find the talk condescending and not in the slightest funny. I find alot of 'traditional' developers miss the point and believe there being insulted and what they have been doing for a long time to be 'wrong' (in no way is it, its just not gospel) and get all protective and dismissive.