While most people would be uncomfortable with it, I really like how cool the dad is. Sure, he doesn't want to hear it, but he's not the one making it uncomfortable, he just moves on to the subject at hand. He trusts his daughter to make her own decisions, at least from what we can tell. He wants the best for her, but knows part of what's best is what she has to also figures out for herself. Something I think a lot of parents could learn as part of the equation.
I think more people should be less embarrassed about things like that. It's part of most peoples lives, no real reason to make such a fuss as so many do.
Unsolicited story Time:
The very first time my father met my future wife was the first time she slept over, it was after a friend's party and we were in my room (though a little early in our relationship for anything juicy to happen yet) she had to use the bathroom which was down the hall and when she flipped on the light she discovered my father doesn't close the door or turn on the light when he has to poop in the middle of the night. breakfast was fun.
Oh, this is precious.
Maybe you should make a compilation of "different" couples 'meeting the parents' and get all the awkwardness over with, to make it more easy for the people out there who still have to get the courage for the real deal.