A good video essay, but I have to ask: why an enforced either/or? David Lynch is both a Film Auteur and a Genre Manipulator, at the same time. One would say his style as a visual author is punctuated by the way he manipulates genres around in his films. It adds an unpredictable quality to all his films.
Much of the artistry of David Lynch is manifest in his ability to promise you one kind of experience and thwart expectations pleasantly. It's the sideways journeys through genres that help make his films stand out and feel fresh and real, in spite of their occasionally fantastical elements. He makes it art and genre-twisting fun all at once.