In reality, these hand-knit people suits--made from angora--are the work of artist Anna Maltz. She makes them in the aforementioned "natural" version, but also in muppet-esque blue, mermaid, and Superman styles. Then she takes photos of people wearing the suits.
This video from San Francisco's KQED takes you along on one of Maltz's shoots.
And, if that's not enough to make her completely awesome, in 2004 Maltz apparently wrote an essay about her work called "Don't Be the Bunny." "Urinetown" references = +1000!