I believe Microsoft employees created this video to self-critique the different marketing strategies that Microsoft takes and comparing it to Apple's marketing strategy. Apple is known for marketing their products with very simple and clean visuals while Microsoft is known for marketing their products with lots of information and colors. I believe this "case study" is parodying Microsoft's marketing strategy and arguing the importance of keeping it simple. The video starts off showing Apple's product which is basically just a white box with a picture of an ipod on one of the faces. Then it shows what would happen if Microsoft marketed the product, and starts putting more and more words and banners and bullets all over the box, overloading it with information and making the product less attractive to buy.
Things like feature creep where more and more features are added to a product and information overload where you state a bunch of random information that is mostly useless are very bad for communicating clearly and effectively. When most people buy an ipod they usually just want to use it for listening to music. Some features such as telling time and browsing the internet are simple and really useful, however advertising every single app that can be downloaded for the iPod would be completely unnecessary and detracts from the original point. Information overload is especially damaging for marketing to a layman who doesn't understand the more complicated bits and doesn't want or need to understand. Giving off too much information can scare off your audience and dissuade them from buying your product just because it looks more complicated then it actually is.