Who's he really insulting though? He's there to promote games, and pokes a little fun in the process. He didn't say the "competition" was weak, or sucks or "shitty", he just made a statement that's meant to spark a laugh. There wasn't even a hint that he was directing that at Kinect or the Wii specifically - so you'd be jumping to conclusions either way.
In the end, it's no worse than Sega vs Nintendo of the past. In fact, "Sega does what Nintendon't" was far worse than anything Kevin Butler said.
Edit: Having a second look, I now wonder if you were being sarcastic....?
I think I was pretty accurate, though as shown, I should've gone for "insulting the competition" on top of "insulting the audience". Just goes to show that I just don't see the little innuendos that people dream up.
And in fact, I think the opposite of these armchair marketing experts. I think an ad directly talking smack in abig way would be lots of laughs, and great advertising.