Interesting, though mostly because of our gut reactions, not because there's anything terribly complicated or new about the moral repercussions, etc.. It's not much different from normal organ donation in most respects.
From the article:
I have not addressed the ethical aspects of HEAVEN. In Thomas Mann's "'The Transposed Heads," two friends, the intellectual Shridaman and the earthy Nanda, behead themselves. Magically, their severed heads are restored - but to the wrong body, and Shridaman's wife, Sita, is unable to decide which combination represents her real husband. The story is further complicated by the fact that Sita happens to be in love with both men. This short story highlights the ethical dilemma that must be faced: The HEAVEN created "chimera" would carry the mind of the recipient but, should he or she reproduce, the offspring would carry the genetic inheritance of the donor.
However, it is equally clear that horrible conditions without a hint of hope of improvement cannot be relegated to the dark corner of medicine. This paper lays out the groundwork for the first successful human head transplant.