The three 'R's are Reduce, Reuse, Recycle... in order of preference. He's doing the second one, Reuse, not the third, Recycle. So in theory that's good, better than recycling. But I can't help but think the environmental impact would be less if something that big and made of metal was recycled instead of being used for a home that could be built using a lot less metal than that.
So I'm not sold on his idea on being so great for the environment, but that's just a guess, I haven't run any numbers on it (nor could I, not my area of expertise). I am sold that airplane houses are a really cool idea though. I agree that the insides need a lot more work. It looks like he's squatting, not living.