This homage to Pulp Fiction was made with Moviestorm.
Moviestorm is a stand-alone (and free) application for machinima production with an impressive list of features. The company claims this is the first such dedicated tool, but you'll remember The Movies game from a couple of years ago as well as Chrysler's machinima contest. And while machinima production might be a fringe activity, it's a "lunatic" fringe: The Movies Online game community website "has around 29,000 Studios with a total of 138,404 movies and all those received more than 803,000 ratings and comments." (source).
Some of these videos are fan-made interpretations of real commercials, like this one about AllState Insurance: