Well he couldn't see her. She's standing behind him. But I dont buy that he couldn't see that everyone in front of him was shocked at what he said. And he did nothing. I cant imagine that he would have thought that he felt that reaction was due to him insulting Bush. He was in the wrong venue for that type of reaction. He meant it as he said it.
Well he may have well meant it as it was taken, against the troops. However when I watched the whole think on youtube, before the reactions started coming out, it seemed quite apparent that he was trying to insult Bush.