It's hard to get a line on whose perspective we're meant to be following, considering we see both Buffy and Willow's fantasies. With the flashes to Kennedy I'd assume it would be Willow's, meaning that we should be on board with the righteous indignation - but Buffy seems so ludicrous that I can't make it fly with myself.

Considering this is Joss, I wouldn't be surprised if it was just for the lolz. It's a bit like in Gone, when Spike told Invisble!Buffy to leave him alone and she just kept pushing, giving us the 'that's cheating' gag that I think quite a few people found distinctly unfunny.