Haha, interactive web cams with remote-controlled sex machines. The idea is sick and disturbing enough, that it'd probably work :p And technically it wouldn't be *that* hard, it's only a 1 DoF "manipulator".
If you wanted to get really crazy you could hook up a kinect controller and emulate the real thing

I could do this. When I googled "manufacturing engineer" I saw pictures of robots building cars and big automation stuff. But this is a small project and its doable.
Yes it is still within the scope of a
http://hackaday.com/ project.
It might work for a while but you are just screaming for competition if the thing has success.
Isn't that the case with any business? You'd have some kind of first-mover advantage, though. And the adult industry is not exactly something most tech companies want to get in to for image reasons.