I've seen stuff like that before (not that one specifically, but identical interaction, this would have been about a decade ago, pre VR usage), but for the moment it just seems too cumbersome and imprecise to me. Once VR gets to the point of accurately motion tracking individual fingers (there are solutions for this, but nothing definitive yet) and some decent haptic feedback, then I think it will begin to really excel over traditional inputs in certain situations.
I can't wait to even try out the Vive's (or the Rift's) motion controllers. Even with just a bare basic representation of your hands in 3D space being tracked accurately, there's a greater sense of immersion, and there's so much that can be done for interactivity, not just for gaming, but all sorts of applications. It's still such early days for VR, so I can't wait to see what happens with it in the next few years.