I didn’t find that very disturbing either. When I saw the chicken carcasses going in to the machine, I thought they could be useful for chicken soup if they weren’t going to “mechanically separate” them.
But actually, I think the final product, (as seen at 0:25 or so) looks quite similar to the OP’s picture, though slightly less DayGlo.
I don’t find ground meat disgusting, nor do I find the fact that hotdogs are made out of non-muscle carcass bits scary. How much different is this than boiling a picked chicken carcass to make some delicious stock?