Wow. Nearly everyone here either a) didn't watch the episode before writing or b) completely missed the entire point of the episode.
At no point did they make the argument that gameplay was the only, or even the best, way to express narrative. In fact, they attack this notion.
They instead make the claim that cutscenes are best when they establish context -- a NARRATIVE tool -- rather than the entirety of the narrative, and that their overuse was due to quirks of the industry's makeup. That is, self-indulgent artists who care more about their movie fetish or illustration skills than about making an actual game can obscure, or even distort or destroy a narrative due to personal predilections.
Which means most of the first 20-odd posters are pretty much talking out of their ass. Those of you who didn't watch the show, watch it first because this discussion is completely misleading.
I used to think the minimum-skills reading comprehension tests done in U.S. junior high schools were inane wastes of taxpayer money. This site proves, time and time again, that, indeed, proof of our failed education system is available for free online.
N.B.: The actual ratio of cutscene to gameplay is irrelevant as a general proposition. The value of the cutscene is dependent on the specific game and the cutscene(s) in question. Thus, a 50-hour game with an hour's worth of front-loaded cutscenes and then around 4 hours more of the same is probably shit, while a 50-hour game with 5 hours worth of cutscenes spaced strategically throughout it could be very good. The first [hypothetical] game inevitably uses cutscenes hackishly to force the narrative down the player's throat -- oops, not player, idiot-chump purchaser of the most expensive movie on the market.* The second can use cutscenes to enhance gameplay -- it might not, but it has the possibility. Killing an hour of the player's time is a punishment -- the designer is punishing the watcher (he's not a player) becasue the designer can't deliver narrative any other way.
*And while it's not a given, it's very likely that the dialogue of such a movie ("game") will be absolute shit. Why? The same reason why George Lucas now sucks: a lack of restrictions. A rich game designer with no limits who wants to write movies will write BAD, HORRIBLE movies because he has none of the limitations that force moviemakers to be creative! He has no producers crucifying his script, no actors forced to interpret his dribble, no set designers to tell him his blocking was shat out of the fetid backside of a diseased cat, and so on. True, there are other artists on the project, but they can be just as self-indulgent has he is. The video game structure forces you to make strategic choices as to how you interact with the player. Turn that into a movie and you can do whatever you want. If you can communicate whatever you want withou consequences, you get, um, internet forums. Who would pay $60 for that?