Ok, want to add something that might help with context. Actually think I've seen this video on Equipboard before, but watch the guy play the 1st minute of the video - that's exactly where I'd love to be as a player. He just glides around super effortlessly... if I practice, I can probably get to about the 0:20 second mark. After that, I feel as if there's a big gap in technique and fluidity from me to him.
PRACTICE... you have to be playing all the time for years to be comfortable in your guitar skin
here's how you should practice:
play more shows, the stage will sharpen your existing skills.... get outside your comfort zone and play music you normally wouldn't.... learn some country classics and try playing them with a chet atkins technique.... get the charts for a ton of standards from the American songbook and site read through the parts, then make them your own once you wrap your head around them (they are classics and you can fit them into any style you choose, but you gotta own them first! you will also learn a lot about songwriting from this exercise).... get a copy of the real book and find some jazz guys to jam on it with..... make yourself available to sit in with a wedding band when their guitarist is sick or busy... play more piano and bring the stuff that excites you back to the fretboard.... I like to dissect one line parts like riffs and solos and play them backwards or with inverted notes or I will often practice harmonizing by ear along with a record with a challenging guitar lead/solo or even along with the trumpet or sax on a jazz album.... find your inner Duane Allman, then lose him again and find yourself... NEVER EVER PUT YOUR GUITAR DOWN UNLESS YOU HAVE TO PEE (unless you are playing another instrument like the piano, then its okay to hang your guitar up)... if you are watching TV try to train your ear to play the chords and/or melody along with every piece of music that's on TV immediately, you will annoy people but you will train your ear, brain and hands to 'do the right things' without thinking about it... try to keep time ALL THE TIME, life has a rhythm and I am always counting time in my head to the rhythm of my day... never ever practice something you have already mastered, move on... go check out Richard Lloyd's youtube guitar lessons and go to his website for print lessons....
This is critical. Don't practice the notes, practice new ways to approach every note. Playing all the 'right' notes is just as pointless and meaningless as saying "these are the chords to that song" as if those are the only chords you can or should play under the melody line. There are definitely wrong notes and wrong chords, but there's lots of correct answers to every musical puzzle. You can decipher that but you are not going to do it meaningfully unless your approach to the part is right. Focus on the way you address the instrument until you can always command it to sound great no matter what you need to play on it.
Most importantly, always try to be the worst player in the room so that you can learn just by listening. In fact, even if you are playing with guys who are not great, make sure you listen, listen, listen and ask questions if they do something you never woulda thought of.
Also, that guy isn't doing anything difficult. He just has a real diverse style, well developed touch, blah blah blah.... play more, I am sure all that guy did for 10 years was play. That's how I wound up with good touch, an encyclopedic repertoire of techniques and a fluid an effortless quality to my playing even when a piece is particularly demanding. Just play all the time and don't be afraid to play shit you don't think you will do well, just get on it and muddle your way through.... then play it again, like Sam.... if you truly love to play the guitar then I feel improving your skills shouldn't ever be a chore.... its just going to happen because you are playing all the time