This is great! The Watchtower has now asserted intellectual property rights over a depiction of a plastic wizard toy!
The thing about the Smurf flap was that it had the shadowy status of an urban legend and never made it into the public record of talks or print. Now they hand us this Sparlock character with their actions and reactions, where it can be fully documented to be seen by the casual onlooker. You could not ask for a better gift wrapped package to discredit the Watchtower, this side of a Bethel defection and tell all book.
There are moments when I suspect that the hands of a secret "apostate" faction in Bethel are behind this video, as a way to tip the hand of the inner workings of the Society, but that would be conspiratorial and I wouldn't want to blow their cover. Ordinary stupidity explains it just as well, and is more likely what we are seeing.