I watched this earlier and it's linked to Sprinkles bakery. As I understand it the cupcakes are baked fresh each day and put into the vender. So those are the same freshness as the ones you'd buy at the counter.

Yes. Sprinkles is a high-end bakery in Beverly Hills, Calif. The ATM is part of their store, in response to their customers wishing the store had longer hours. This is not a nationwide instant-cupcake-machine deal. At least not yet. I'm sure someone will try to turn it into one, eventually.
As to whether I'd use such a device - from a bakery shop, sure, why not. From a machine in front of 7-11 or a gas station? Probably not.