Oh it was hilarious to pretty much the entire theater.
Kids have no clue what that means. Adults get it.
I’m 45; pretty sure I’m allowed to think it was funny. If it’s not your brand of humor, don’t find it amusing - there’s nothing wrong with not thinking it’s funny. It illustrated the point very well: kids don’t get the stuff that adults find “hidden” in movies. Adults don’t have to like it, they don’t have to think it’s funny, they don’t have to find it acceptable - but it goes right over the heads of kids.
If that bugged you, I wouldn’t watch “Shrek” anytime soon.