I find it quite funny, mostly the idea that someone would ever bother making those animations. The violence is so ridiculously over-the-top that I don't feel like it has a connection to real world violence.
The other day, when returning from a night out, we passed someone who had been hit by a bus whilst riding their bike. There was no blood or gore, he was just laid there in a foetal position not moving. That was hundred times more disturbing than this video, or any video-game I've ever played in fact.
(It kinda sounds like I just walked past the guy and ignored him - he was being looked after by police and ambulance crew.)
I don't think I've ever been attracted to a game by gratuitous violence, but it has never put me off either. Having said that, I think Gears of War provides an example of the effective use of gratuitous violence. Executions and chainsawing people are not satisfying because of some primal desire I have to stamp on someone's head or cut someone in half but because they are essentially rubbing your victory into your opponents face. It's like saying 'Look at me, I beat you and I have all the time in the world to finish you off'. Other violence in the game acts as a feedback of your skill. Headshots are satisfying because the sound of your opponents head exploding signals, aurally, that you pulled off a difficult shot. (Compare this to a headshot in Halo where the only signal you get is a small symbol in the corner of the screen (unless your have Grunt Birthday Party on of course), or with TF2 where headshots are accompanied by the critical hit sound.) Similarly landing the perfect shot with an explosive weapon or the shotgun in GoW causes the enemy to explode, signalling that you landed it perfectly. I rarely (if ever) find myself revelling in the actual violence at hand, however.