I can see why people would think this is both hilarious and, possibly, awful, but I think you have to look at it in context. This clip is taken from a slightly longer 'electro set' that the band played on all dates of the 'Red Carpet Massacre' tour throughout late 2007 through 2008. This was played post interval and was intended, in part, to give a nod to some of the influences the band were listening to around the time of their first album and that they'd revisited when making 'Red Carpet Massacre' in 2007, giving something new to DD audiences used to seeing a rock band only. It also meant that Roger Taylor didn't have to bash away on a drum kit at full tilt for over two and a half hours without rest.
The electro set list was: -
Showroom Dummies
Last Chance on the Stairway
All She Wants Is
Warm Leatherette
I Don't Want Your Love
Skin Trade
'Showroom Dummies' was dropped for the later parts of the tour, although why so I have no idea. It was interesting to watch, and I suspect intended as something 'fun'; it gave a different emphasis for the songs, and gave people the opportunity to see a couple of the band performing on instruments more associated with Nick Rhodes.
Hope this adds to the debate.
EG