I guess I have a different reaction. Of course the video is funny, but the underlying principle of negotiation for stuff (especially services, and especially photography!) is just a fundamental part of doing business. It's supply/demand a quality. If a buyer perceives that you offer value (convenience, quantity, quality) that exceeds others in the market, then they will pay more. If they think they can go down the street and find someone else offering better or the same value, then you will find pricing pressure.
The photography business is incredibly tough. I had a studio in the US for 5 years, and I didn't earn much. I had a really tough time differentiating myself because frankly there are just too many really talented photographers out there (more talented than me). In the last few years there has been a literal explosion of people re-discovering high-quality photography with DSLRs. Digital lets the average person practice infinitely more than used to be possible, so skills development can happen much quicker. The simple fact is that there is a lot more supply of photography services, and at progressively higher levels of quality, than there was say 5-10 years ago.
The wiring in my brain might also be a little off from living for quite some time in China. I guess I never negotiated post-hoc for a meal, but literally every time I got my hair cut, and every time I bought DVDs, I negotiated the price. That would be considered perfectly normal there.
Eric