The beauty of fingerpicking is that it sounds great once you get it but you can always get better at it. It's a much higher skill ceiling than power chords. Just can't get discouraged because it's not going to happen overnight.
The biggest problem with his hand position is that he is playing a les paul with a heavy body that only balances when the head stock is pointed to the floor. He is uncomfotable leaning over compensating for the weight distubution. 2:29 will show you the difference of the student compared to the teacher that has has more experience with the same guitar. Some Les pauls are also just difficult to play. Try an S type guitar for proper hand posture as most of them balance much easier and allows the neck to be elevated higher for more legato and bar chord playing. With the neck pointing down like that you will need to play with thumb over style baseball bat grip a heap more like Tom bukovac.
I learned on a les paul, not a real one but it weighed a ton and a half, when I switched to a strat, I started to enjoy playing a lot more. Your battling the weight most of the time... not a beginners guitar unless they're weight releived.
Seems like there is a foundation issue. Learn some easier picking tunes to develop more dexterity and then revisit. I get it though, we all fall into woodshedding over our heads at times.
