Yeah, I used this video as a prime example for why people would go for a clinch and takedown:
http://m.youtube.com/watch?v=3k1PfjUaq0s
Observe how long that brawl lasted, and the damage to the thug in that video versus the length of the brawl and the damage to the thug in the OP. Big difference.
I've referenced that clip in DT before! In two ways, actually. In how not to get your *** written up and suspended. But more to the point - what should he have done here? Which, of course, is what you said above... take him down and wrap him up.