Mark Everett miniaturizes London out of spite in the new Eels video: "It's my way of saying 'thanks for making me feel bad by accusing me of being a terrorist in Hyde Park this June. I'll show you. I'll make your city look like a toy.'"
Thom Yorke's "Harrowdown Hill" video is credited as the first to use this technique. You can check out more about miniature faking here, and see some example shots from Harrowdown Hill director Jim Clark here.