I love Gary -- he walks that fine line between saying something that is technically correct and "light folklore".
Some thoughts:
1) When he points the lightsphere at the person, he indicates that he has softened the light. While true to a degree, what he has done is change the apparent size of the light source by a magnitude of approximately 4 (the head of the lightsphere is about 4 times large than the flashhead). Many people assume that the diffusion material does the softening. He never says it does, mind you, but it feels implied.
2) Personally, the only difference in the two flash shots to me is that the naked flash feels overexposed. I have to wonder how the before and after shots would compare if he had dialed about 2 stops of compensation into the flash. I would bet they would look EXTREMELY similar.
In this video, I think Gary did two things:
1) Flash compensated with his light eating sphere
2) Created nice round catchlights, as opposed to little rectangles.

- my first encounters with ETTL left me a bit mystified when I'd converted to digital. I became distracted. Then I realized that nothing had really changed regarding "basic concepts of exposure 101."

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