That video is spot on, heres a funnier one,
http://www.youtube.com/watch?v=FKTAJBQSm10My definintion of the uncanny valley:
If an object is not human but given human characteristics (Asimo, Wall-e) it appeals to us, mainly because the concept of Wall-e being humanoid, but not human gives us a visual of him being "cute", the cute factor in human visualization is based mainly if it is likely to harm us. Start to add human characteristics, and you fall into the uncanny valley, because, as it begins to look human, our brain starts to think that we as humans are more perfect than these things, and we feel threatened, (Terminator, I-Robot). If the object is indistinguishable from a human, (Final Fantasy: Advent Children, Altair) then we accept it as one of us, and it appeals to us.