I'm no expert on Japanese culture, but I think they probably think the same things we do about stuff like this commercial...that it's funny and weird. They're just a little more accepting of funny and weird things being on TV and in stores.
It's just like how most Japanese people think tentacle hentai is weird and gross, just like most people everywhere else see it. The only difference is that the Japanese culture is tolerant of the people who create such things, and you're more likely to see niche-style items hit the mainstream or at least get a lot of press.