"First, what's your source?"
-Beyond evidence from the 2005 video itself ("Held up with *Word* and *Word*", knowledge of what they did and didn't have finished from later previews, they ALSO had a video where Will Wright, Lucy Bradshaw, Ocean (or water), and a few other people spoke about Spore. My source is a consolidation.
(Note: PLEASE don't make me fetch videos PLEASE!!! I hate that part of an arguement/Debate/infogathering)
"Second, was it completely staged or were parts of it?"
-Frankly... Learning what was and wasn't possible and parts of the game they weren't anywhere close to finishing to the point where they dropped it... I personally think it was completely staged. With what we know now we can say for certain that it was at least 90% staged. Will Wright makes many of the same mistakes twice.
"Third = Not a Question"
-Alrighty then
"Fourth, what on earth do you mean, "Impossible"?"
-In a later video mentioned earlier the team spoke about several concepts that quickly became impossible as in unreasonable to add onto the game. Namely the Ragdoll physics.
Though interestingly Will Wright and Ocean (or Water) both defended a more Mature gameplay. They ended up losing grudgingly.