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Grubjob? That's good. I guess it's better than sticking your ding-dong down the vacuum hose. Seriously though, I do think there is some kind of validity to this thing. When I first saw it, I was instantly reminded of Temple Grandin's Hug Machine:
http://www.weirduniverse.net/blog/comments/2508/ I mean, you're right in pointing out the implicit creepiness of this thing but part of that I think has to do with the fucking weirdo German's that made this video. On the other hand though, I think that the virtual haptic experience is something we humans will increasingly normalize. Just think of the back massaging chair, or the, gulp, vibrating bed. In an era where people have computer generated wives and acquire emotional attachment to their iPhones, maybe - for some people out their - this weird blob of unrequited love is just the thing to keep them from the deep end.