ingenious sure, but it's likely to be a toy that gets used (not sure how a kid would actually play with it) and then put aside for other stuff. Once the novelty of it wears off, its not much to look at.
My daughter had one of the original tickle me elmo dolls. Compared to this it sure wasn't much - just a stuffed elmo doll with a little plastic box stuffed inside it that when you pressed the button on it would play elmo laughing his butt off. Simple - but it was odd how it could actually start making you laugh as well. Plus, you could take the box out and the kid had a regular stuffed animal - not some hard skeleton covered in fabric.