It's not about the mud hut. It's about how the mud hut was made.
The “environmental sustainability” gains you get from using on-site materials would be totally erased by the fact that if you actually built houses like this at scale and expected people to live in them, we would have to massively increase the land area occupied by humans, which is the exact opposite direction we need to go in.
Show me where this technology can knock down the cost of adding infill housing or building vertically in locations where land and construction are expensive (that is, where people actually want to live), and it’ll be worth paying attention to. Otherwise it’s just a dumb, expensive distraction.
I agree we should be building denser to meet demand for housing in cities. But not everyone needs to live in a city.
The technique is limited to mud huts for now. It's a demonstration of what it is capable of for now. With more research it could become more useful later on. Seeing that is not rocket science.