You're both right. It is used in low concentrations in some food products to give a wintergreen flavor (wintergreen gum, for example), and in topical analgesics (like Tiger Balm, for example) because it absorbs through the skin and acts as a counterirritant to potentially relieve pain, though studies don't see to support this use. It can be deadly if ingested directly (salicylate is the same thing found in Aspirin) in the form used in the video, and I presume one could absorb enough through one's skin that it would also be harmful in strong concentrations as shown in the video.

If nothing else, it seems like having that much concentrated methyl salicylate would irritate a lot.