Be sure to dig into the details before taking this at face value. There once was a story "Rat brain flies plane" a couple decades ago, and it turned out to be bogus. But to find that out, you had to read the paper and reverse engineer that nothing substantial was actually going on. It's tempting to be charitable, but you can't really know whether headlines like this are legit till you understand exactly what they did.
(The rat brain guys repeated the experiment until the plane stopped crashing, but no "learning" was happening; it was expected that when the neuron's range reached so-and-so, that the plane would fly level. So they started with a neuron outside that range, showed that it crashed, then adjusted the neuron until it flew level. But that's not what "rat brain flies plane" implies.)
Previously it played pong. Rather poorly. Then they added a "python programming layer." Now it "plays" doom. I agree with your suspicions.
I looked into it. They're not feeding the framebuffer to the neurons, but have a "signal" when an enemy is on screen to some of the tissue's inputs, and how to locate it in the x/y axis, and have outputs for the character to turn right or left or fire.
It's "see this input signal, send these output signals", which seems consistent with the title.
It seems they grow the neural tissue on a chip the neurons can interface with and send out / receive electrical impulses. They let the neurons self assemble, and "train" via reward or punishment signals (unclear to me what those are).
Either way this makes me nauseous in a way I haven't experienced much with tech. The telling thing for me is, all these people are so excited to explain, but not once, ever, in the video speak of ethics or try to mitigate concerns.
We know this is only 200,000 neurons. Dogs have 500 million. Humans have billions. But where is the line for sentience, awareness? Have we defined it? Can we, if we don't understand it ourselves? What are the plans to scale up?
It's legitimately horrifying to me.