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Was there no other explanation on how this was achieved other than the fact that each node has individual AI?
There was also mention of a tiered command structure (units, groups, everybody), fuzzy logic, and different (I assume simpler) AI game mechanics.

I remain unenlightened. The phrase "emergent AI" sure is cool, though--taking notes, EA?

Sort of what I thought, until I read more. If you read more, he explains that this article was a broad summary/introduction and that it is explained in more detail on his other blog posts that he links to from that one. I found it very interesting, especially that he is using C# and LINQ. Read some more of his posts, very cool stuff...worth the read for sure.
There's several other articles in this series, which can be reached through the blog archive on the right or the link at the bottom of the article.
When it comes to topics such as emergent AIs and the Cult of the Singularity, I only hope our new emergent über-intelligent overlords at least keep me fed and my cage clean.