Act 3 of Windmill Isle/Apotos. This happens on rare occasions, and there's a video of M.Green Hill in Generations where the same happens. Not sure why it happens, but it's funny. Sometimes you can make similar things happen on purpose by jumping over triggers. Getting high up enough in the first 2D section of Rooftop Run 1 lets you botch the background, and there'll be non-solid houses (the 2D ones from the far backgorund) strewn across the level.
Pretty much, the guy who uploaded this done a whole lot to glitch manipulation in his Sonic Unleash Speedruns.
^Pretty sure it's act 3. I had seen a similar case of drawing failure when skipping chunks of levels, like Eggmanland. First time seeing it on a whole level. http://www.youtube.com/watch?v=K8uAw99OhTE
I haven't played a lot of modern Sonic games, but this level must be really crappy if it can be played until the end even if almost everything is invisible.
I dare say it symbolizes the series (of within the past decade at least) as a whole; the level IS entirely on rails.
What a silly thing to say. The guy in the video clearly had everything memorized- it's a pretty easy stage to screw up on.
I've had Eggmanland go invisible on me before at the same place in the video above, but it fixed itself moments later.
Just see for yourself: It's an optional extra stage you could unlock by collecting enough medals. It's actually pretty hard and the guy in the video in the first post must have memorized it really well. The fun in Sonic Unleashed comes from replaying the daytime stages over and over again trying to better your score.
It's just the Time Eater messing it all up. :v: For me, I don't think there's really much fun in having an entire level which is literally just 'on rails'; it's pretty much a cheap-skate way of excusing their laziness to make that into a proper level.