This is a wonderful example of a technique known as Tilt-Shift. I had no idea this style of photo/videography even existed up until about a year ago.
The style used in the video have been around since the mid 1960s when Nikon introduced a lens providing shift movements for their 35 mm SLR cameras. It’s possible to fake the Tilt-Shift effect in Photoshop and you get the best result with pictures taken from a height. I decided to give it a go sometime around christmas last year. I took a photo from my balcony one dark and gloomy afternoon and followed a tutorial i found online – the result;

After a while my faking skills improved and I really wanted to post a better pic but this is the only one I could find – I guess they are on the HDD still inside the retired PC tucked away in a dark corner. The effect keeps popping up all over the place these days and can be seen in TV shows such as Firefly, Dollhouse and ITV’s Whiteshapel.
Links:
Wikipedia -Tilt-Shift Photography
tiltshiftmaker.com – Fake it yourself
Smashing Magazine – 50 Beautiful Examples Of Tilt-Shift Photography