A couple of thoughts on this.
I'm curious if he pointed out that this was being done from back stage because the VLC playback window popped up and that there was a deffinate delay in the sounding start of the race and when motion on the screen began.
I don't know why they would go to the trouble to connect a wheel and pretend to drive when it was being done from behind the stage the entire time. Kind of a foolish and poorly handled demo.
Rob and I observed something similar a few years ago at another CES. We were sitting at an ASUS/Intel/Sprint conference and they three parties were discussing WiMax cellular broadband. They were demoing a game (the name of which I don't recall) and were touting it's smooth online play over WiMax. I got a clear photograph of the notebook they were demoing and saw that not only was there an Ethernet cable plugged into it, but that there was activity on the port as well. While this isn't empirical proof of deception, it was clear that things weren't exactly how they were sold to the audience.
I guess the point of that anecdote is that this shit happens all the time. It's just part of the demoing process. Comical and slightly embarrassing but common none the less.
Oh that is just Pathetic!!