Absolutely correct:
"slicing paper is pretty low on the list of "sharpness feats" so to speak. I can slice paper with knives that won't shave arm hair, for example."
It certainly doesn't prove anything to a knifenut; isn't that what this place is about?
That's why the sharpening guy at the state fair puts that rough edge on and then demonstrate how sharp it is by cutting paper with a slice cut. At least the state fair boys use newspaper, which is a little harder to cut than regular bond. At the state fair when customers are few, they do the big demonstration by slicing fruit, vegtables, wood, and then end with the newspaper cut. Now the sharpening boys at the knife shows use that final polish wheel, they usually use the newspaper trick, but with slices and usually a final push cut.
Either way, any knife sharpener at a state fair can get any knife as sharp as the one in that video in less than 3 minutes, so the video doesn't demonstrate much about the knife or the edge. Plus, it's even easier to get that kind of slicing power from a chisel ground edge.
I've seen a master smith demonstrate their edges with fine rice cigarette, with push cuts at various points at the edge to demonstrate sharpness and uniformity. Wouldn't that be a slightly better demonstration of an edge's initial sharpness?