Tom was just laughing at himself.
The joke is not on you. Tom, and the rest of the staff and Luis-like people take the site seriously. They created the costly trophy system FOR quality flash animations and games, and that says a lot. They even give out cash prizes that would reward those who put effort on their submissions (but many times effort=/= monthly award).
But this is a site of EVERYTHING by EVERYONE, which is what makes Newgrounds unique. Yeah it can be frustrating to see smut or bullshit in the spotlight, but if we don't want that, we might as well just post on DeviantArt (....er, usually...You know what I mean).
And what did you expect from the Newgrounds award show? I thought it was pretty good for a couple of guys in an office. The "YouTube Quality" would not have been a problem if they did not compress it as much, but they too must conform to a reasonable file size limit.
Tom made jokes and acted a little goofy sometimes because that's who he is, and approached his site in a tongue-in-cheek manner. It's like you said, the is a site where a professional-level frame by frame animation is just as capable of getting on the front page as mostly-static hentai images. You make it sound like they just quickly whipped up the video for the hell of it. They did not make one last year, so it shows that they care even more this year.
Video editing, 3D modeling/animation, green screen effects, and other work went in to that video, so besides the joking manner of Tom, I do not know why you find the video to be disrespectful. But you have to remember what the goal and presentation of this particular site is.
Perhaps as time goes by, Newgrounds will continue to shift more in the artist's favor rather than the drooling masses craving cheap video game parodies and hentai
skarai
Serious face went to town :|
In there! He met a clown!
The clown smiled and laughed, danced like he didn't have a worry in the world!
:|
How do you laugh and smile like that? said Serious Face
While leaning forward, the clown answered
"I want to die"
I-smel
Wow.