Both the indirect and incidentally complex can be helped with literate programming. We have been telling stories for thousands of years and the idea of literate programming is to facilitate that. We do not just tell them in a linear order, but jump around in whatever way makes sense. It is about understanding the context of the code which can be hard.
But the problem of being unobservable is harder. Literate programming might help in making chunks more accessible for understanding/replacing/toggling, but live flow forwards-backwards, it would not. But I have recently coded up an event library that logs the flow of the program nicely. Used appropriately, it probably could be used to step in and out as well.
I am not convinced that radical new tools are needed. We just have to be true to our nature as storytellers.
I find it puzzling why he talks about events as being problems. They seem like ideal ways of handling disjointed states. Isn't that how we organize our own ways?
I also find it puzzling to promote Excel's model. I find it horrendous. People have done very complex things with it which are fragile and incomprehensible. With code, you can read it and figure it out; literate programming helps this tremendously. But with something like Excel or XCode's interface builder, the structure is obscured and is very fragile. Spreadsheets are great for data entry, but not for programming-type tasks.
I think creation is rather easy; it is maintenance that is hard. And for that, you need to understand the code.