I'm more impressed by the eerie beauty of it than the technical achievement, even if the code was orders of magnitude larger it would still be wonderful.
I'd never seen that demo before, but from your description I had a suspicion it would be a C64 floppy drive, which has the same CPU as the C64 itself and runs embedded firmware acting more like a file server:
Apologies for the cursing, but that is the most bat shit insane demo I have ever seen. I'll just leave you with the top comment on the video: "Witches have been burnt for lesser sorcery"
In this case I'd say the batshit part is that the floppy drive has almost the same CPU as the C64 it starts attached to. 1MHz tied to raw I/O pins is powerful, no matter what it's inside.
https://www.pouet.net/prod.php?which=53871
https://www.youtube.com/watch?v=36BPql6Nl_U
I'm more impressed by the eerie beauty of it than the technical achievement, even if the code was orders of magnitude larger it would still be wonderful.