That game looks hilarious. Even in a realistic surgeon simulator, I'd probably do the exact same things. I the Rift could be used for educational purposes like this though. We're reaching a point where technology is becoming so advanced and realistic that students could use technology such as the Rift as prep before actually doing surgery. It would obviously never replace the real thing or say practicing on cadavers, but it would still be a very useful option, as cadavers are not available 24/7.
I saw on a news show that some surgeons were using a Nintendo Wii game to practice doing surgery. It's not a perfect simulation but they were using the game to sharpen their hand eye coordination. This is why I disagree when people say that video games aren't useful or educational.