The problem with this video is that they seem to have directed the video without the song in mind - dynamic camera angles that swoop and sway and crash just don't match the music. Although I greatly dislike Donnie Darko as a film, its usage of the song is more appropriate.
The opening images of this video match the music better than the ending images. The grammar of the ending camera angles and cutting indicate that we are supposed to be getting "pumped up" whereas the music is in direct opposition to that.
What would work better is to see this main character chased or running around the town with a more languid, less frenetic camera. There can still be, indeed must be violence, but ending with him shooting up aliens doesn't show us that it's a "mad world." Showing this guy lost in the violence, trapped by it, or lost in the destroyed city would work far better.
The first erroneous shot is the one where our main guy seems to hear a noise. The camera rotates around his head, turns to face the noise, then zooms in. Sorry, no, that is a "holy crap enemy to kill" shot not a "this is so sad/bewildering/mad" shot. I bet this cinematic is in-game, and I bet at that point the music ramps up or we just hear the noise of the oncoming enemy.
The next portion is great. Showing our guy moving through streets lost and alone works on a simple and beautiful level. But when he suddenly encounters the enemy, he jumps into a building and the camera jumps with him! The presence of the Mad World music implies that we are observers of this man, we are supposed to judge the difficulty and ambiguity of his actions. We simply cannot do that if the camera instructs us to experience what he experiences! By hurtling the camera through the building, the video wants us to be dynamically involved, while the music itself wants us to be analytically detached.
The final portion that features an alien creature of gigantic size is also inappropriate. If they had let the main guy merely observe the giant creature, the music may have fit. Instead they chose to have him open fire, implying action and violence. This only makes sense with the music if what he is destroying is sympathetic, or if he dies. By fading out, we are supposed to be in awe of the giant creature while feeling what? The music is directly opposed to this final sequence.
I do really wish I had an XBOX 360 though. This game has always looked sweet.