Welcome to the world of training and training theories.

I have experienced two situations with bullets flying my way... I didn't like it. One was an AD, the other was not.
Later and as a producer, videographer or whatever I have to do get gun related content on tape, I don't need to practice stunts where I put myself or a videographer at risk. I also don't want to put a shooter in a situation where they have to be afraid of hurting someone in a non threatening situation.
We simply put remote cameras down range and believe me, a person shooting and knowing he has a 4000 dollar thingy next to the target, that person will for sure focus on the front sight. The risk is still there, but a camera can be replaced.
I have been participating and covering tactical training on 2 continents over the last 20 years and believe me, there are many training theories out there and every school has a slightly different approach to training. Heck, they also have to establish something that differ from their competitors. Because of that and over the years, the quality of training has in fact improved.
On the other hand and this is from my perspective.... No matter the different philosophies and theories out there... and when it comes down to a real life threatening situation... it is all about the knowledge of your equipment, the balance of speed and accuracy and most important, how you deal with panic control.
There is no doubt that a 360 degree training environment has its advantages especially for highly skilled and experienced LEO and military personnel. However, I am not so sure that it is a wise thing to offer this to the general "tactically inclined" civilian gun owner. It takes only one fatal mistake to give all civilian training schools a bad reputation.
No matter how good the training is when it comes to surviving a gunfight, it still has to be done in a controlled environment. I have had talks with veterans and LEOs who have been in gunfights and the general answer is this: No matter how well trained you are, you will never be able to prepare yourself 100% for the horror and where to find your own borderline between control and panic. The only thing that can make a difference is your own skills in acting fast and shooting accurate. It takes practice, practice and practice. Will shooting at a paper target with a person standing beside it, make you a better gunfighter? Nope.... It just makes you extra slow and careful.
Folks... my theory about this "scary training video" is pretty simple. Maybe the students were highly skilled shooters in a setting where the photographer didn't have a tripod and said... what the heck. They all agreed, someone filmed the whole dang thing and unfortunately it went public. I find it hard to believe that James Yaeger gave his approval to upload this video.
On top of that, we now experience a public damage control that is probably not the best I have witnessed.
Internet can be a damaging tool.......