From the video I took it that he's changing modes by typing on a keypad on the arm with his other hand.If I understand correctly, he has 2 inputs via the muscles in his arm and then can change what those inputs do by changing the mode. So if he wants to pick something up, he changes to grip mode, then can pick it up, hold it tight, release it and put it back down again all without changing mode.
I know someone with 1 arm who I'm sure would love something like this, as he struggles with a lot of simple tasks where he has to hold something in one hand and do something with it using the other hand. You don't realise how much you actually need 2 hands for basic tasks. He actually has an artificial arm with a claw on the end, and he opens and closes the claw with his shoulder muscle, but it's purely a mechanical system, so the idea for an artificial arm controlled by other muscles like in this video isn't new, his arm would be around 30 years old, it's just using modern materials and methods to improve on it. My friend's artificial arm is very cumbersome and hurts his arm at the joint, so he rarely ever uses it except when riding his motorbike.