Foster,
If you ever got a chance to watch Chelsea Handler's other show, I can tell you that she so not aimed at average, conservitave middle America. Though they would laugh and get some of her jokes, I see her more on par with Family Guy, where if you had a little more knowledge about certain things, you would get so mush more humor out of it.
Anyway, I thought the whole bit was funny, and it does exempllify how (sadly) Chicago is slowly headed down the loo with all the stunt casting (and I clearly heard her say "When did Chicago BECOME the joke musical"). They weren't making fun of the show. Just the C-list celebrities that go into it (though I agree that many have actually turned out not too bad, but then again, I'm the one who saw Alan Thicke get a one minute extended applause by the people around me when he was introduced at "All I Care About is Love". Now that's sad when Seattleites think that he's a celebrity worthy of that much applause!)
Xanadu! Can't cry on cue!