Not so much a "debunking" as an "I can do it too, and you know that I don't believe in such poppycock, so consider it debunked." I wish he'd shown himself palming a bloody sponge and some chicken gizzards before the 'procedure.'
Copying something using traditional means or magic tricks =/= "debunking". Neither is explaining how a phenomenon could, in theory, be faked and relying on smug expressions to do the rest.
I am neither defending "psychic surgery" or attacking James Randi, just saying.
Quite frankly, this is why the rest of the world scares me... there's a country that's actually making money off of people who would pay someone to reach into their guts and pull out chunks of who knows what. You might need an appendectomy, instead you get your spleen out.
You might as well accuse him of actually having psychic powers and using them to try and discredit other "real" psychics. People have said as much in the past.
Being a stage magician seems the best way of attacking these people anyways, since this crap is more performance than anything else.