I'm sure there were children waiting in line, but I'm sure that he didn't shout it out for all to hear. I think the fact that he was telling the dirty jokes (and they really weren't all that dirty) where he was actually enhanced the jokes. If it had been a private adult party the comments would be expected. It's the fact that here is a beloved children's character at a department store saying this to you that makes it funnier. Of course, I have a sense of humor, and can appreciate a store Santa that actually has a sense of humor.
I have a sense of humor too, in fact its a pretty sick one however I do also have a sense of appropriateness. Now if you want to have a nice looking young man in his late 20's wearing nothing but a Santa hat saying that while I'm sitting on his lap, I'm all for it. But if I was sitting on a 68 year old man lap and he said that I'd be creeped out, but thats just me.
As far as Macy's I don't think they would appreciate either choices

) with Mickey/Minnie. 
