Now, I think this sketch actually really works. It is silly, and taken at face value, is pretty much an excuse to say the word faggot on television as many times as possible.
What keeps this sketch from being truly offensive is a bit of background information on the actor portraying the eponymous faggot: Scott Thompson, who is (and was at the time) openly gay.
This sketch, while it was in season 1 of TKitH, it was in episode 6, so there had been some time to establish what THitH humor was all about (how all 4 male actors don womens' clothing and play female characters, frequently).
Overall, this seems to me to be similar to the use of the word "nigger" in Blazing Saddles.
In both cases, the potential to offend is dulled by self-awareness. Both works present their shock words with a wink, as if to say: we don't really mean it, but people who do are terrible...
Which takes me to the id of the Republican party, a man blessedly free of the ravages of intelligence, self-awareness, tact, or any semblance of propriety whatsoever. Here is an anachronistic use of a highly geographically specific slang term; a term that has a much different meaning to the culture as a whole.
What this represents is an outright refusal to adapt with changing times. It is an assiduously maintained ignorance of what is acceptable in polite company.
And this is red meat for those who view themselves as victims of "political correctness" gone mad. Like this asshole. Now they're circling the wagons around their idol...
But FuckFace von Clownstick isn't smart enough for that to be his intention. Either he's a genius, and the dumb guy blowhard is just an act, or he's just a dumb guy blowhard. Occam's razor suggests what we're really dealing with.
In the spirit of the reason for the season, here's an exploration of Christ as a carpenter.
Afterall, I wouldn't want to alienate the 70% of the population who evidently get all butthurt that there's not enough jesus in christmas, now would I?