Oops, I posted prematurely. Here's the full version:

I think the people offended by Art's joke are being a little thin-skinned. Like many jokes, the messages sent by this one are complex. The point of the joke is that, while it does make fun of the Taliban who needs water, it also makes fun of the Jews. In fact, it's the Jewish guy who is stereotyped: he dislikes Arabs, and he'll do anything for money. It's not an anti-Arab joke, since the Arab doesn't do anything mean or evil or even stereotypical.

At the same time, the joke is only mildly anti-Jewish. The Jewish guy doesn't want the Arab to die; if he did, he wouldn't send him to the restaurant but out in the wrong direction. He just wants to increase the guy's discomfort and make some money out of it.

It is typical of Jewish humor to be mildly self-deprecating and also mildly self-congratulatory, and this is an example. On the one hand, it shows how Jews cleverly put one over on a non group-member. On the other hand, it also shows Jews engaged in behavior that is obviously morally wrong. And to top it off, it reinforces a stereotype of Jews ("Jews will do anything for money").

One of the qualities I like in a joke is that you can think about it for a while and find new wrinkles (it's the folklorist in me). By that standard, I like Art's joke--even if it is Anti-Semitic in the broadest sense, making fun of Jews AND Arabs!