Do people use it?
I always thought it might scare people away from Bitcoin. When an ATM + pub is the way the are introduced to it, wouldn't you question why it is that much more expensive to pay in Bitcoin?
If you need some btc and you can get them without interacting with other people and paying a 5% fee, i think many would be interested. There might be a cam at the place though, so for real anonymity you get a bum to do it for you and pay him a few danish kroner, or you put on a cap and a mustache.