As the credit line acknowledges, it’s actually a parody of a popular song by Leonard Cohen. Here’s kd lang’s masterful (and different) rendition:
Really, this kind of parody straddles the line – otaku readers are more likely to recognize the lines and not know the original song; non-otaku are more likely to recognize the song and be baffled by the references.
What prompted it? It may have had its origins in Anime Diet editor Ray’s singing column on Valkyira Chronicles. It may have been prompted by a conversation with About.com editor Deb Aoki about musical talent.
Will it work? Will it fail? As of post time it has ~75 downloads. Only time will tell.