In the video he said, Duplicate Content is not a huge problem. But, it can hurt you if it is spammy.
I do feel that Matt Cutts sometimes tells something that may not get SEOs jumping into assuming something from his comments. And some of the comments are pretty diplomatic. But, I do beleive him in this.
Because, the best way to see if the content is duplicate, is by searching in Google with some phrases from the article. And when I do that, I do see multiple search result. If Duplicate Content Filter is so strong then Google would have shown only one result.
Again, another fact is, Google sometimes make algorithm updates based on what the time demands. But, it might take much more time to get a foolproof solution. And when they come with it, they do some rollback. e.g. in recent Panda update many have reported that their site have gained traffic. But, it's really tough to track as there are so many factors and signals.
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