This is somewhat impressive...

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Sometimes they even laugh at each other when the adversary is falling down. :)

When I ran it my brother came along to see why I was laughing, and then we couldn't stop chuckling and occasionally bursting out loud for thirty minutes straight... it's the modern day equivalent of The Three Stooges. :)

The interesting part (apart from the 200kb size while boasting a simple game, CSG operations and AI animations, but that's not uncommon in the demoscene) was the dynamism: there isn't a single scene which doesn't show some original behaviour even in such a simple environment. That's certainly a hint of things to come...

Other then in gaming, these technologies will become incredibly useful in the entire CG industry (for example think about any war scene, from Starship Troopers to 300, where you could have a single artist adjusting the overall effect instead of commissioning ten artists to create unique animations repeated every N models plus massive character animations for things like explosions on the field).