I'm not sure how dismissing your post is meant to be- but many people in long distance relationships would love having such a product.
If anyone wants to "solve the problem of LDRs", I'd much prefer them to as a look at things like immigration laws, international transport, cultural barriers.
And sure, this is opening up a entirely new avenue on top of phone/cyber/webcam sex that wasn't available before, and marks a massive step forward in what's available when people are geographically separate.
I tend not to bother with LDRs either, I must admit, I think they're mostly a bad thing.