Interesting, but I’m not seeing how this enhances realism or immersion; it just looks like the character is doing a weird little pan around the object; it was a little vertigo inducing to me actually. Also, head bob in video games has always been problematic – it tends to be distracting if anything; I mean, MY head isn’t bobbing. (So yes, I always turn it off when possible.) In real life, you really have to focus on the bobbing for it to be noticeable, because normally the brain just compensates for it and your eyes stay focused on whatever you’re looking at while moving.
Part of the issue, I think, is that when playing a video game, the camera still just represents head position; the eyes are never part of this, being free to look at any part of the screen. So there’s no real way to incorporate eye movement. Maybe that could be different with VR head tracking and eye tracking, but I can’t speak to that.