Generally the idea is that the whole world slows down, not just you, otherwise it wouldn't be much of an advantage. Also it would seem he didn't mean VATS so much as he meant slow motion.
I realize that, but even in real time, if you have an enemy moving to the right and you cast a fire ball where he is, you will miss. VATS-like systems likely won't compensate for the proper lead. Fallout could do it because it was working with guns.
And I also realize that he meant slow motion, which is why I used those words a few times in my post.
On a side note, though, I honestly find cinematic effects to be kinda cheesy. I enjoyed them at first in Dragon Age, but I got sick of seeing my character doing the same thing over and over again. I'd prefer that they added more options for real-time action, such as different key combos for different moves, stuff like that.