Needs a lot of improvement, but I think this might actually have potential in the real [combat] world, at least for anti-insurgent urban warfare.
A version that can actually walk on four legs without problems [kind of like a Mech that had to take the short bus to Mech school], actually grab things with its [minimum of] three-axis arms-of-death, punch through buildings and chew up things with its jaws-of-doom, and shoot a 100 foot wall of flame out of its nose would make one hell of a psy-ops weapon. Especially when you have to attack a building you know is booby-trapped and/or full of suicide jihadis.
Just make sure to add some glowing red eyes, smoke coming out of its nose [at all times], and a 100,000 watt sound system over which this thing can make earth-rattling growls.
It would probably be too much work to make the thing autonomous, so just rig it via a satellite link or local radio datalink to a control station where two 16 year old kids with a few computers and joysticks can get paid to send Hajis off to Allah.
Am Yisrael Chai!