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Well theres no doubt the video might be staged and that the exploit at that point was in early stages and unstable, but that wasnt the point of the video - the point was to show that they have a working solution for the N3DS. SonyUSA said that she/he didnt have emuNAND with the beta she/he received. The new emuNAND on the N3DS is 3 gb compared to the 1 gb on the classic 3DS, so it requires extra work as it may seem. But all in all its in their interest to release the update as soon as possible because theyre effectively loosing money every day they prolong since Sky and its clones have entered the market.
source: 3dbrew.orgThe Nintendo 3DS has a 1GB NAND Flash chip. Due to the NCSD header, the actual used size of the Old3DS NAND is 0x3AF00000-bytes(943MiB). On New3DS, the actual NAND size and the total size used by the partitions, is 0x4D800000-bytes(1240MiB).
Actually, it's not that big.
I'm gonna dabble a bit into conspiracy. Why I think they fell behind is that they encountered brick issues or sth with the ambassador n3ds consoles. That was the only last minute thing that could have broke the update so late.
*Tin foil hat off*
Anyone else want it?