I've always had a real soft spot in my heart for that controller. Partially because it was associated with so many vivid ealy-Xbox memories and partially because I find modern controllers a bit small. The PS2/PS3 controller was the worst offender and in no way filled out my standard-adult-male hands so much so that I found gaming on the PS3 a little uncomfortable.
The big damn X on the front is bold and hilarious and indicative of how powerful tech was viewed in the early 2000's. It was growing so fast and people were only starting to intuitively grasp what that really meant that there was a wildness, power and imagination that came associated with it. Movies like The Matrix, The 13th Floor and almost any other sci-fi based around tech was exaggerating it's power to the N'th of the N'th degree, so that big bloody X, the design of the console and it's "LOOK AT THE POWER INSIDE ME" boot up animation fit really well.
So yeah, The Duke looks ostentatious but once you get a feel for it I think it creates a better overall resting pose for your hands, primarily palm area around the ring and pinky finger. It's not perfect for the reasons you listed, but I think it's an amazing piece for it's time and is VERY much unlike any other controller- but not in a bad way like the N64 controller.
As to the video, I like it. I like the weird, grainy, handicam, crime-re-creation style. The deeper, southern style voice bits I could do without personally.
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