No, you are not imagining things. You have not been playing the Angry Birds game for so long that you are seeing live representations of your favorite pixelated birds popping up in real life. Someone really did create a live demonstration of Angry Birds in a Barcelona courtyard.
We posted a video of Angry Birds Live a while back, but this video blows the other one out of the water. Whoever is building these insanely elaborate sets and synchronizing them with a phone version of the Angry BIrds game is certainly a mad genius. Way back when we dreamed of creating the pyrotechnics behind those Disneyland stunt shows; now we want to work for this guy.
Also brilliant - the fact that T-Mobile is using this video as part of their advertising campaign. We love!