Its not so much a theory. We make so many simplifying assumptions about our surroundings that the underlying physics tend to elude us.

How many people REALLY understand how a steam engine works? Sewing machine?

This is also a trick question, and in a way that I kinda dislike because it additionally confuses matters by the setup.

Specifically, any change to the electrical field in the wire triggered by something like flipping the switch IS always limited to propagating at the speed of light, and as such WILL take 1s to travel the ~300,000km through the wire.

There's a bait and switch here though, were if the wires are close enough, and the power on the wire is high enough, there is a strong enough magnetic field in the wire to reach across the 1m distance to the end of the wire by the light bulb. That magnetic field will induce a very small electric field on the wire as well. Calling that 'lighting' the bulb though is 100% a trick question though as no existing light bulbs are sensitive enough to light up from that little current unless the 'live' side of the wire is both in very close proximity and running very high voltage.

The part I dislike, is too many people believe that electricity running in a cable is 'faster' than light, and the trick here kinda re-inforces that rather than helping to clear that up for people.

Nah I dont see a bait and switch. I see people thinking electricity goes down wires while the underlying real world is fields propagating through space.

It really is a difference if you have the lightbulb 1 meter away or 1 light second away. We have a tendency to think abstractly of these situations, freely giving things ideal properties that they dont have and taking away the properties we dont like to use in our petty examples.

If you had enough voltage to overcome the drop in "ideal" 1 light second long cables they sure as hell would induce enough current in parallel cables 1 m away to light a bulb :-)

All that said people do under-appreciate how fast the speed of light is, just as they under appreciate how much a billion of anything, especially money, is.

The speed of light is getting to your destination instantly from your own point of view.

Maybe I can illustrate better.

The 'answer' they give is less clear than it could be for illustrating that purpose. That is to say, the very small electric current that is transferred 'wirelessly', would work exactly the same if your wire were never connected to each other period. Making it a loop as the example, then ignoring the transmission of force on the electrons along that connected wire is unduly complicating the example. If you want to illustrate that current in a wire generates a mag field, and that mag field in turn can induce a current in another wire is much better done by pointing out the result is the same if the wires are not connected.

It also avoids re-inforcing the very common misconception people have about electricity in wire not being subject the the speed of light...

In general I love the Ve channel, but I think this video does more to confuse people than to enlighten them.
Also, no mention of "holes" (even though that's more part of semiconductors).
Also, of the multiple-choice answers, there wasn't one corresponding to 80% speed of light which is the measured speed of electrical signal in copper (depends on the cable itself, frequency, and other factors).
And if all of the power actually travels through the air, then why does the ampacity of a cable matter at all? Tesla could be quick-charging with flimsy cat5 cable!