It's called stage pickpocketing, the people know that they are being touched obviously but don't realize things are being taken from them. Misdirection combined with sleight of hand is basically the definition of pickpocketing, so I'm not sure what your point is. As a side note, street, or "real" pickpocketing, as you call it , almost always involves more than one person. Sometimes three or more people are involved, so some people would say this is more impressive.

And I'll bet this guy could take whatever he wanted from me or you, my friend

Cartoons

this is more than 30 years ago... the best ones were gentleman jack, borra, mark raffles and dominique