Yeah... Staccato proper is the wrong word. Perhaps staccato-like articulation is better. Because you can obtain staccato playing by simply ending the note faster - that's not all this technique does.
The OPs video shows another form of articulation you get by using fingers that aren't currently fretting/fingering a note. By varying the pressure of a finger in front of a fretted note, and how far it is from the fretted note, not only can you alter the "decay" time of the note without "setting up" for another note, but varying degrees of pressure can give you a few different sounds to the note as it fades.
The trick, if you want to use it, is to make sure you've got a finger in-front of a fretted note. Rocco Prestia uses his middle and ring fingers a lot so he has his index finger available to create that kind of shortened sound. It's great when the band you're working with doesn't want that midrange burpy Jaco sound, but you still want to tighten up the interaction between the bass and drums.
Chuck Rainey has a version of this technique, too.