About a third of the way through the video, there was a shot of gameplay with liquid that seemed to flow to ripple and conform to the landscape during rotation. Given that you mentioned that it was hard enough to simulate 20 spring mass bodies in real-time, I imagine this wasn't real CFD, so I guess my question is: did you consider real CFD? It seems like the time is coming to make it feasible in 2D games.
I don't think we considered CFD. Certainly it should be possible in 2d. For example Plasma Pong uses fluid equations. One issue with real CFD is keeping the fluid where you want it, although I suppose you could use invisible barriers.