You are correct.
DUers are thrilled to death that he punched Palin below the belt. They are reading this as deliberate, which is why I think the National media is picking it up.
This reminds me of the ending of that movie the Dead Zone. Except instead of holing up a baby to be shot, the candidate calls a female VP candidate a pig in lipstick.
Tells you how well he "runs" a campaign, especially one on the down trend.