Putting aside the recent LEGO licensed platformers, nobody has ever really got a LEGO game right. Even Traveller's Tales' games don't really get it; they're great because they're simple and funny, not because they use LEGO in a particularly exciting or satisfying way.
This 3D clip, from Francisco Prieto, is what a LEGO game should look like. The success of Minecraft, in which many people just walk around building stuff, is testament to that.
LEGO doesn't need stories, or characters, or plotlines. It needs...LEGO. A simple structure to allow you to build things (one more polished and robust than previous or current attempts). Then something with which you can easily share images and/or videos of your creations. Maybe even something like Spore, which lets you build a certain object then have it behave like such an object. Build a plane then fly it, etc.
Actually, now that I've typed that down, most of that doesn't even sound like much of a game. But who cares! It's still play, it'd be LEGO, and given the extortionate prices the real thing commands these days, it'd be a welcome way to let people express their creativity without going broke in the process.
Getting back to the video at hand, it took Francisco over three years to produce, as he had to model every piece individually.