Yes, the joke about inviting a woman up to the bedroom (or rather, what the woman is THINKING the man wants with her in his bedroom) is on the racy side. Perhaps they can find a "cleaner" way to make the point--which is, of course, to show the hazards of relying on a Shabbos goy. (Doesn't the halacha probit asking a non-Jew to do on Shabbat and Yom Tov anything you can't legitimately accomplish yourself?)

As far as whether the rebbeim quoted say they don't endorse the switch for non-emergency use: did they say "emergency," or did they say "shaas hadchak?" The former would be a heart attack; the latter would be having a dozen guests at your table Friday night when all the lights go out and nobody can see to read a bentcher.

Finally, the video isn't suggesting that a child be taught to break Shabbat. I concede, though, that it raises a burden of chinuch. If you think you have problems explaining to your kid that the town where you're going to spend Shabbat doesn't have a communal eruv like your town does, imagine trying to accustom them to the idea that the house *just next door* isn't equipped with a similar switch.

I think the advent of the Sabbath mode oven, where, with Star-K endorsement, current is clearly being manipulated on Yom Tov (and not just for emergencies!), has started a radical shift in how we view the use of electrical devices on Shabbat. KosherSwitch is just one more step on this continuum which, in time, may lead to an acknowledgement that turning fluorescent lights on and off is no problem whatsoever.