What stance are you supposed to be standing in? (should your back heel be peeling off like that?) And what's with the bouncing (especially toward the end)? I've only ever seen competition fighters "bounce" -- I've never seen any form of bouncing in any kind of traditional form, kata etc.

As far as I can tell, bouncing is only something that came from sport fighters who take advantage of the springier surfaces of boxing rings and other such similar surfaces used for comp fighting (as opposed to fighting on Terra firma). Some traditional forms do employ springing, but that's entirely different from bouncing as it's more to do with plyometrics -- that explosive footwork that allows you to be strong and solid in your stance, but also fast and nimble. Here's a video of a nunchaku kata -- this guy's legwork appears to be nimble but solid, there's a spring or skip in his step, but no actual bouncing.