Even when Tina Fey held up the Palin in 2012 t-shirt the New York audience cheered. It didn’t laugh, it didn’t jeer, it didn’t boo - it cheered. That must’ve stung.
My take on that was somewhat different. I think the implication was that Sarah (being portrayed as an opportunist) would be running in 2012 because John McCain was going to lose to Obama this year - and that's more what that audience was applauding. But overall, good natured, funny, no-harm-done bit and that Olberman skewering was worth staying up for alone.