Beepster
Considering he's using FL Battery would probably be a huge step up for creating beats. That however is merely based on what I've seen people say about it online.
Yes and no. Essentially you could operate just as in the video but drag the samples into Battery instead of SD3 and it would be every bit as user friendly. Battery is quite simple to use. After watching the video again (I guess I initially fast forwarded past the initial FL stuff) I'd say if the goal is to use the Step Sequencer and just drag and drop files into a player anything will do: SD3, Dropzone, even Cyclone DXi. The huge benefit to Battery or another sampler is if, and I say if, someone is looking for more functionality in the long run.
For me, a step sequencer doesn't cut it, not enough flexibility and even in the case of "step sequenced" material I can enter and edit far quicker in the PRV. Set the snap as need and the PRV is a visual hyper-step-sequencer. YMMV
Disregarding how you enter your notes, however, I need flexibilty. I may find a kick I like but often I need to mess with the kick to get exactly what I want - add filters (resonance, cutoff etc), set one hit to cut another off for a gated effect, set different kicks for different velocities, whatever. I think one also has to consider what their longer term goals are if they're going to invest some time. Most samplers are just as simple to use as SD3 in the beginning but there are far more options if you care to dig deeper.
As far as the video, it looks like the only issue is Elijah doesn't quite seem familiar with SD3 or some of the other tools yet. Once you set up the outputs etc. of SD3, Cyclone, Dropzone or any other sample player and create a template or something you would likely speed up the workflow quite a bit. And some VSTi's like Rapture have step-sequencers built in. There are probably some other good choices out there.
Ultimately to get the best workflow you have to consider your needs, pick the right tools, set them up properly and spend the time to familiarize yourself with everything. A little work but in the long run you save so much time.
A little off topic but, if you're looking for the ultimate in flexibility, Reaktor by NI is a monster! And it functions as a VSTi. If you can name it, Reaktor will do it. Step seq, fx, almost any possible type of synthesis, sampling, analyzing, A little example:
http://soundcloud.com/stoons-1 (listen to "Breakfast...")
This was done entirely with Reaktor using nothing but a sample of white noise as the sound source, there are no other VST's, synths or samples used, sequenced in Sonar. All instruments including drums were created with a short sample of white noise and nothing else (as part of a challenge/competition). If I had to "desert island" a plugin it would be Reaktor, it will do almost anything. Not as user friendly as SD3 ;-p