The classic pendulum problem is nothing like high speed closed loop positioning. I'd guess the control loop is on the order of 50-100 hz in that video.
A digital servo drive will have a position loop at least 1 order of magnitude higher and a current loop at least 2 orders of magnitude higher.
Its simply not fast enough for high accuracy positioning.
Matt
[ame=http://www.youtube.com/watch?v=a4c7AwHFkT8]Control of Inverted Pendulum with Servo Pneumatics - YouTube[/ame]