I didn't think it funny at all. Just extremely disrespectful to Christians. In fact, I was very irritated by King's overall continuous smug, condescending demeanor during this show.
It was in the WAY he said it. Larry King style plus he boiled it all down to the Easter Bunny. I guess you sort of have to know Larry to see the humor in it.
It is a planned effort to create doubt.
A few people will buy it - not as many as they think, but they believe they are planting seeds in order to weaken Western religion.