Well, honestly, I believe that it is simply a matter of Seth being Seth. That is his style of humor. I see no reason to be shocked or otherwise surprised. Was it proper, well, that's a different issue. I am certain that he did not mean to convey any malice with that joke.
Yes, we are a long way from the graceful elegance of Johnny Carson or Bob Hope hosting the Oscars, but I see no reason to be castigating Seth's performance as host. He was being who he is. Actually, the host that I found the most offensive would have been Chris Rock in 2005. I enjoy his comedy, but I believe that Chris did cross a line and even carried over a certain agenda during his Oscar monologue.
Anyway, a brief side question... is that you in the blue dress? If so, both you and the dress are very lovely.