I must disagree with you on one thing, Sherry. (Behold, the Second Coming is at hand!) The joke is only questionable if Rock knew of her condition, which he says he didn't. Since he's been first class all the way since the moment of impact, I believe him.
Let's look at precisely what he said.
"Jada, I love you."
So far, so good. Nothing wrong with that. Next, he said:
"Can't wait for GI Jane II."
Here, he compares one beautiful actor's shaved head to that of another. It's not the greatest joke in the world, and would have been immediately forgotten if Will Smith had stayed in his seat. Mean-spirited ? Insulting? Disrespectful? Anyone who thinks so is setting the bar so low, they must walk around in a perpetual state of outrage.
Smith's showy "defense" of his wife ensures that she's going to hear that joke for the rest of her life. "Tell us about the GI Jane joke again, Grandma, pleeeease!" Good going, TJ Hooker.
"I am a river to my people," is one of Anthony Quinn's lines from Lawrence of Arabia. I've heard others say it before, heck I've said it before, but always with irony.
"Thanks for the bagels, boss."
"My pleasure, Doris. After all, I am a river to my people!" (Traditionally, the line is delivered with a broad sweep of the arm.)
Then everyone in the office cheers until he leaves the room. Then they roll their eyes and acknowledge to each other that their boss is a dork.
If Rock had said something along the lines of the jokes at the Comedy Central roasts, i.e. "The only person you will ever make happy is the Mexican who digs your grave," I'd be more sympathetic.
Smith's reaction was completely unwarranted. Even if it was a truly insulting joke, the Oscars stage is not the place to take issue with it. He disrespected everyone in the room and pulled focus to himself for the rest of the evening. Not cool. Not cool at all.