The title of the video was a bit misleading, hence my rewording above. I was hoping to find out some trick about generating friction with guitar pick but no such luck. In reality, one is making fine shavings from a pick to catch a spark from a ferro-rod. It turns out that the celluoid in guitar picks is highly flammable, and as an added bonus is waterproof.
The tip itself originates from Creek Stewart via his Apocabox program. Even if guitar picks are not a magic firestarter after all, their diminutive size and weight might make it worth tossing a few in a survival kit. A couple would it into all but the most over-stuffed Altoid-tin survival kit. I had never given them a thought before now but will in the future.