I think you just made my "premise" for me. You just reinforced that the episode was intended to mock the miracle chasers and those slipping into icon worship rather than the Madonna herself or God. That alone (absent the Popes treatment) doesnt make it blasphemy exactly what I said, not whatever else you imagined to be my premise.
Were Catholics who flock fluid dripping icons insulted? Join the crowd of the South Park insulted.
Nope. The facts are clear, they mocked the beliefs and icons of the Roman Catholic Faithful. They lost. So do you.