The "Saw Your Boobs" song was on par with MacFarland's type of humor. Nobody should've been surprised by that, or, any of the other borderline "jokes" he spewed... If you saw the movie TED, you would totally understand.
As for me, while I'll admit TED got more than a few laughs out of me, I prefer the Oscar's host to take it up a notch and show that one can be funny, without being childishly immature and crude. I honestly thought the song was simply stupid and I cringed for MacFarland as he was performing it...
Billy Crystal was always able to be major-league funny, while not dragging down the show into TED-like gutters...
That's just my opinion. I really don't see MacFarland as the comical genius other seem to believe he is. I simply see him as a dude who isn't afraid to say what others might shy away from. Big deal...