What does Sharon Osbourne reportedly think is fabulous?
It's the story of a "California woman accused of cutting of her husband’s private part and disposing of it in a particularly gruesome way after he asked for a divorce"
Fabulous eh? If you say so. And if a man mutilated a woman in some way would that be fabulous too? Is someone going to convolutedly argue that while (for example) rape is an evil crime, mutilating a man's sexual organs is just fine!
The audience apparently shared the joke