I have no problem with Lee doing this.  In fact, I credit his willingness to fight the genre as the very reason he was able to do such things as Star Wars and Lord of the Rings; instead of continuing to spiral downward into more abysmal titles. 

As to the show, thought it was a bit of a let down.  Did think his Death skit was funny.  Also thought his intro for Meatloaf was good.  Yet the material in this episode seemed to lack, IMHO.  And I do think it could have been a lot better had he allowed himself to parody the Dracula image.

It was interesting just to see him in a completely different environment.  Also, it's clear the ladies in the cast had crushes when they presented him with flowers (maybe roses) at the end. 

I'll always love Chris Lee and the things he did and/or tried to do.  Glad he's still going and doing things outside the genre.  After all, he could be drawing a paycheck from the likes of Troma and we'd have to suffer through some of it; laughing and lamenting as we discuss what he could have done to fare better in the biz.