for some reason i thought he had like some kind of flashmagic or whatever it is that lets you move a section of multiple layers... i just did not see him drawing every frame for this style seperately, just woah.
Check out LPC802/LPC804/LPC812.... sub $1 in QTY. Very simple. They all have a bootloader built in ROM that works over a UART. Coupled with FlashMagic (or your own UART loader), I can't imagine anything much simpler.