That's normal, the compresser runs when the defrost is on. The other setting is more like a vent setting, not a true defrost. The AC system is used as a dehumidifier to take the water out of the air(as it also does in the summer). Also the compresser is then used in the winter months and lasts longer. That way they get lubed and that gives them a longer life. The video did help by the way and I didn't even have the sound on.
04 Cav auto
95 Beretta auto
So does this mean that the car will burn extra fuel during the winter as if the air conditioning was on during the summer on the other settings?
Yes, but most of the time you will only use the defrost for a short time. Then you can use the setting above that if you want, adjusting the hot and cold to keep the windshiled clear. Just use the main defrost when you need it(don't keep it on all the time). It's not the same as running the AC though, you are only trying to dry the air, not cool it. The compresser is on so there will be a drag on the engine. Think of it this way: if the green light is on you are losing power do to drag and the MPG will go down. If you run the AC for most of the summer then there will not be much of a change in MPG vs winter.
04 Cav auto
95 Beretta auto