From what I have played, it is very fun. Maybe because all the people I played with were new at it like me, so we were just smashin' buttons. Didn't come against someone like in that vid. (This is all based on the BETA).
I played against some skilled people in the beta. Most noteably Sly players. If you're just getting familiar with the game use Kratos since he's probably the easiest character to pick up and learn.
Studies show it is humanly impossible to play through all online content in LittleBigPlanet in a single lifetime on Earth.
Don't Forget to Play [Persona 4 Golden] Every Night Before Bed.