I disagree. My impression was it was handled professionally. When you suddenly have an aircraft in an unexpected position, you sort it out first and then worry about pilot deviations or controller errors later. He clearly indicates some indication that something is wrong by starting off with "Stay with me for now." Normally, the first thing a tower controller tells you after takeoff is contact departure.
If he was fixated on the intersection, he probably wouldn't have seen the departing traffic until it was too late to do anything about it. The intersection is what, 3000 feet, from the end. It's less than 30 seconds from the time the hawker started the roll to the crossing. Factor a little time to realize that the guy was rolling rather than holding, and even if he'd been looking that way he might not have stopped it... and then what?
What makes you think the supervisor was looking at the situation or even in the cab at the time?