It is interesting to read all of this, and everyone has made some very good points and comments. I especially like the comments about the need for training.
Yes, continuous training is necessary for every CCW holder, and not just the 8 hours that you get in a class here in Michigan (I don't know what it is elsewhere, but I am assuming that the requirements are similar). That being said, I have taken it upon myself to obtain some really good books about self-defense tactics and training. In addition, I have had formal training in kickboxing and other unarmed self defense techniques (a really good book is "Get Tough!" by William Fairbairn). I regularly go to the range and practice shooting each month, as well as drawing from my holster in front of a mirror. I was taught that you should be fast enough that by the time you finish the sentence "oh my god, but I can't believe this is happening" your firearm should have left its holster and brought into action.
Now, growing up, I was exposed to firearms on a continual basis. My paternal grandfather was a sniper and machine gunner during WWII, and was expert with a handgun. He taught me all of the basics such as breathing, sight picture, grip, etc. At a young age, he made a statement that still rings in my mind concerning the use of deadly force. My grandfather told me "you don't ever pull your gun out without reason or purpose, but if you are forced to pull it out to defend yourself or ones you love, you shoot to kill because anything less and someone may die". Judging from his experiences, the man knew what he was speaking about. I would consider myself to be above average in skills than rather than the typical person because of my grandfathers teachings.
Having said all of this, and after watching the videos, I feel that it was unfairly rigged as well. The shooter was already keyed in on the student defenders, and was an expert law enforcement officer. The cards were stacked in his favor already. I think this would have been a very different scenario if the shooters were evenly matched.
In this situation, I would have reacted in the following manner: find cover as rapidly as possible, assess the situation, and react with deadly force as necessary. While doing this, I would have made sure there were not any innocents in my line of fire, and would have pulled my firearm while under cover so as to hide my movements. In addition, I would have been wearing different clothing so my firearms was more accessible. I am not standing up and presenting the shooter with a nice target. The test subjects had no training in properly assessing a situation, or how to find cover, prior to this scenario.
Finally, this couldn't have happened in Michigan. In reality, I would have had to run to the door, fly out a window, or play dead. We are not allowed to carry concealed on college campuses. I am not even allowed to carry at my place of work; nice when just the other day we had some knucklehead running through the building with a gun (some domestic violence incident, thank goodness the police caught him before he killed anyone).