This is a terrible decision to make for any law enforcement agency... if you DON'T chase this guy, these days he'll probably post this video online and encourage 100 other motorcycle assholes to run: "look, I sped up for a few minutes and they gave up!"
On the other hand, if you DO chase, you get this sort of insane high speed chase through traffic and pedestrians, where the officers and the suspects can get killed, along with bystanders.
My personal opinion is the chase isn't worth it, but I can see how people can argue to chase, from a strategic standpoint, not for just macho reasoning.
After I watched that video, I was amazed by the number of links to videos of Finnish/Swedish bike nuts doing the same shit, and I know it happens in the US also.
If we didn't have hundreds of more pressing problems in the world, I'd be up in arms about 200mph+ civilian motorcycles, but as it is, we have bigger shit to worry about.