Do you want to perhaps point to a specific time in that video, and compare it to a non-Smalltalk environment in a way that makes this purported isolation apparent, because I don't see what you mean.
I don't recognize whatever operating system the demo was done on, so if the Pharo system is not using native widgets I would not know, you'll have to explicitly state if this is the case.
The presenter is in the host operating system (Mac OSX) until the Pharo image is "up and running" at the 0:40 mark. Everything until the presenter opens up debian at 5:00 is custom Pharo based desktop / window management / even the mouse cursor if you look closely.
Then this just means that Pharo is one of the Smalltalks that does its own window management. I think Squeak might be the same. It is not a general characteristic of Smalltalks though, and certainly is not part of their essential nature. As I said, IBM Smalltalk used native widgets and windows, and had good interaction with the rest of the operating system.
I don't think you can draw a general conclusion about Smalltalk from a specific example, especially like this one.
I don't recognize whatever operating system the demo was done on, so if the Pharo system is not using native widgets I would not know, you'll have to explicitly state if this is the case.