Great Idea (I think?), poor execution

Why don't more companies try to do this? I can only imagine that developing a great, funny, interesting video that goes viral can reach as many people as buying a 30 second spot on The Jay Leno Show. (check out the search I used). Unfortunately, I don't think this particular video is good enough to truly go viral...so I am applauding the effort and the idea, not the video itself. Is this where advertising will go in the future? Advertisers not wanting to pay to broadcast their ads? Between this idea (not yet a theory) and DVR (which is a whole separate conversation about how Tivo could not quite become the Kleenex or Xerox of the DVR industry) which allows viewers to fast forward through commercials, will TV ads eventually die out? Will the commercial time become so cheap that broadcast networks will be unable to provide shows with the great production values we have come to expect? Are we going to move back to '50s style product placement?