Neat, I thought this was going to be another youtube spam thread, but you've actually presented a neat, original concept, and provided a video that's a good framerate and quality, is informative, funny, and detailed.
On the topic of the glitch, it seems to be useful as a "scout mode". It wouldn't really be useful in ssp as you need to go into creative mode, so It's probably most useful in some kind of minigame, which brings me to the question - Does this work in multiplayer? If so, it could probably be applied to some neat minigames! ;D
"Being a ghost and eating toast and stuff like that" <3
Edit: Your username and the video popularity brings me to believe that isn't even your video... =\