I actually laughed. But, I'm used to Letterman, and other similar talk shows, making jokes about politicians, governmental figures, and other groups of people. If they didn't poke fun at someone, would anyone actually tune in? Probably not.
I'm not saying that it was OK for them to essentially announce to the world that she is transgender, either. Obviously, not many of us would like to be outed to millions of people like that. I'm just saying that I'm personally used to talk shows making fun of people, in general. It's what they do and if you tune in, you probably expect it. Amanda didn't get slammed nearly as badly as, say, George Bush, who was the most powerful person in America.
And, depending on how you look at it, the joke could actually be on the guy who stormed off of the set, upset that she used to be a man. He was playing the role of the guy who finds out that a woman he thought was pretty (and maybe more)... "used to be a man." In a way, and depending on how someone interprets it, it could show that it's silly to judge someone like this. The skit exemplifies the fact that you can't always tell who is transgender and who is not. I think that's actually important, since a lot of people are convinced that they can always tell. I've been standing around guys who were talking about a girl who was trans around me and they were saying that they could tell she was trans... that they can ALWAYS tell. Yet, they didn't have a clue that I'm also trans. They were saying some degrading things about her and basically saying that she was gross. In a way, I sort of wanted to tell them that I'm trans, too, just to prove a point. But, I didn't because I didn't want them to then see me the same way.
So, even though the skit could be really offensive to some, maybe it isn't all bad.
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I may not be the woman I always wanted to be, but I'll always be a woman.
-Me