Basically. It's a bad situation, because the intruder was someone the home owner knew. It turned out to be his ex-girlfriend (I thought it was another man due to the baggy clothing and the fact that so many black women look like men). Now, I don't care who it is, if someone breaks into your home armed with a knife and you wake up and see them in your room, you can safely assume they intend to kill you. If you don't have a gun handy but manage to wrestle the knife away from them, you could use the knife to defend yourself if the intruder continued coming after you.
The cop in the video made an immensely stupid decision. How he didn't deduce that the guy in his underwear was NOT the intruder is beyond me.