I watched again your video and really, I don’t see anything which allows to edit layer mask with levels.
Using the levels on layer mask allows to change transparency of the layer [u]dynamically[/u] according to its mask. In your example, you have shown it is possible to add adjustment layer on what is appearing behind the mask (but not in a dynamic way since you need to save everytime to update the result). It works of course also on the mask itself but adding levels on a simple layer will not change transparent pixels, it will just change contrast.
The idea behind adding levels on layer mask is to extend transparent area (black pixels) or opaque area (white pixels) according to the grayscale image.
…or maybe I am dumb and I need more explanation =p