Yea, that was a really bad thing for him to do.
Was the joke good? No. It was a dumb joke, but it was largely vanilla. He made a bald joke. I lost my hair at 18 years old. So I get being sensitive about bald jokes. But if someone said to me "Hey Adami....looking forward to seeing you King and I 2!" I'd think it was dumb, but offensive to the point where I'd slap someone? Good god. When Chris Rock said "it's a GI Jane 2 joke!" I don't think it was to excuse it or say it was a good joke, but just that was so kind of nothing. All of the awards shows have tons of roasting as parts of them. Ricky Gervais has never been slapped but this one not only gets a slap but gets the excuse of "love makes you do crazy things" followed by a round of applause? Eh.
Also to Stadler's point, I don't think this has anything to do with the Hollywood elite. I have no idea how anyone else in Hollywood sees the event, just Will's personal hypocrisy which I'd agree with. If a ton of actors/directors/producers etc put out a statement defending Will, then I'll be on your side, but right now it's a bit premature to say anything about systemic hypocrisy. There's a number of reasons why he was allowed to stay and people didn't do much, likely just being unsure what to do. But we'll see. Right now I don't see much defense of him.