I watched just over three min. And then u-tube and/or AT&T DSL decided I'd seen enough.
The trot is a gait. The pace is a gait. The movements in between are gaits. This horse is "gaiting." It's not doing a square, running walk, but it's gaiting.
I call it a "stepping pace." I'd like to watch it again, but the Internet gods have decreed otherwise. It looks pretty smooth. The movement overall looks good. It seems well trained (nice lateral movement over the bar and turns).
It's not a running walk or anything close but it's not extreme and horse does not seem to be laboring or under any undue stress.
I'm not surprised that many horses in CA move this way; most Walkers (and those breeds derived from them), everywhere, move this way today. The gait looks comfortable, just not square.
If I'm looking for brood stock I'd reject a horse that moved like this unless I saw evidence (like foals on the ground) that with the right mate it would produce foals that move more squarely. But if I'm looking for a well trained, quiet, comfortable riding horse then this one would make at least the "first cut."
Have you tried an CA Marchador folks? Ours "gait" too!!!