It's impressive that they can do this in a browser, but some parts of the video were pretty funny. We can keep up with the user's typing! We can clone the Finder! We can measure and ellipsize text! We have layout managers! Welcome to 1995, Web 2.0.
EmEditor ( http://www.emeditor.com/ ) handles large files very nicely. It has a special 'large file controller' that lets you configure in real-time how to access a file. I've edited 4GB text files (global search & replace) and the only slow step is the final 'save' function.
ed is one I assumed would be good. I downloaded a windows distribution of it last year for a problem involving massive files. Turns out that particular version of ed is not designed as efficiently as you might expect.