Personally I found that HILARIOUS! I was pretty addicted to Warcraft 3's DOTA for a while, so I can appreciate the humor behind the vid. You have to have an understanding of all the social interaction that goes on in the chatting during and between these types of games. Some of these kids take this sh!t FAR too seriously.
Ya i guess you have to be into xbox live to find the humor in it... nah he didn't f^ck up his account it was all a joke on the kid lol he really thought he was getting hacked but the kid just logged off lol. That guy has a bunch of other vids there's one where he makes some kid cry lol.