We're not alone -- various deejays were going crazy this morning with song parodies... "Turn on your night-light!"
I don't think the guy is a child molester or anything. I think he decided to get himself some press by making up a story to impress Caroline Kennedy Schlossberg, and didn't think about the sleazy ramifications of that particular song being associated with a pre-pubescent child.
For what it's worth, Paul McCartney was inspired to write "Hey Jude" when he was hanging out with Julian Lennon after his parents' divorce, and the kid was sad, and PM said "Hey, Jules, don't make it bad" -- then decided later to change it to "Jude" because it sounded better.
It's possible to be inspired and go on to write something unrelated to the person who inspired it. But generally speaking, the more "touching" in the song... the more best left unsaid.