There is clear track deformation in that video. Around the 42 second mark: you mean the jump? That's how jumps look in Motorstorm.
"Track deformation"? What's that?
Yeah, apart from the incredibly basic-looking track deformation, lack of particle effects, ridiculous sparks and massive bouts of slowdown. I can only assume anybody who thinks the final game looked that bad hasn't played it in a long, long time.
Terrible? It looks like the final game...
Plus, I think it's mostly the video that's bad, not the game in it.
The video being of poor quality doesn't explain missing visual effects and framerate issues. I mean, for goodness sake, it's practically moving in slow motion around the 42-second mark.
Did you play the game at all?