I love how elegantly designed this three-legged robot is. With regards to a War of the World's full-sized model, the pilot would have to be suspended in a gyroscope within the body. The gyroscope would keep the pilot steady as the mechanism moved.
As to the application suggested in the video: this puts me in mind of Minority Report, and the scene where tiny three-legged robots are released into a building by policemen to identify every individual's (John Anderton/Cruise hides in an ice-filled bathtub to disguise his heat-signature from the IR-sensitive robots) iris.
One more step towards the Panopticon State.