I've just seen the video at YouTube.
I think it is an effective response. The struggle between good and evil isn't confined to combat. At it's core, this struggle involves ideas. Humor is a very powerful way to convey these ideas. Besides, the decline in Israel's military success cannot be laid at the feet of satirists.
I also think the Israelis know the state they are in and have always been in. Under those conditions how can you survive without a sense of humor?