Absolutely. And I'm sure the talker had a "<wait for laugh>" in their transcript, which they had to quickly skip since people were taking it seriously.
I can see this happening. Same as how "don't be evil" was a joke outside the company (cause obviously an evil company would say this) but taken seriously by some inside.
To be honest Google scrapping the "don't be evil" mantra was quickly followed by Google beginning to behave substantially less ethically. In retrospect it's hard for me to argue that it didn't work.
I would have had a hard time hearing that as anything other than sarcasm.