I don't really see this as stupidity. Aside from the prurient uses, think about long distance surgery. What if someone in orbit got struck by a microscopic meteor? This technology, in combination with those that already exist, would allow a trauma surgeon anywhere with a high-bandwidth connection to see the operating area in 3-D, control all available surgical tools, and feel the wound. The same would apply to those living in extremely rural areas (Western Canada or the Outback, for instance), or those that are so emergent that they wouldn't make it to a hospital (an accident on Everest as an example).
Sounds pretty useful to me.