The American Spectator editors "got" it as well, with a take very similar to Malkin's. Certainly not behavior that we should expect from a First Lady at a public function. If you can't imagine Jackie Kennedy, Lady Bird Johnson, Pat Nixon, or Nancy Reagan saying it from the podium, it probably shouldn't be said. Of course, if you drink enough Kool-Aid, you'll rationalize it any way you can.
The culture is just so trashed at this point that this kind of gutter humor fails to raise eyebrows. Truly evidence of the debasement of our culture.