Sure it can. One joke was about how there was a video of the vegas shooting, and there was a guy running out of the frame with a full beer, as if shielding the beer was the most important thing in that situation. "The beer must've been pretty expensive... But the shots were free."
It's tasteless, yeah. But it's comedy. It's hard to say there are limits.
I think that bit was awesome. Norm MacDonald is a great comedian, and he can deliver everything just perfectly.
That's a perfect example of a comedian taking something supposedly solemn and turning it funny. Kind of like when a chef takes an off-cut of meat and turns it into something delicious.