I think it was pretty stupid on the newspaper's part, since:
1) It's well-known that pictoral representations of any kind of Mohammed is a religious taboo in Islam (despite the existance of tasteful representations frafted over the centuries that have gone convienently unnoticed) and
2) The majority of Muslims aren't too apt to "get" Western attempts at humor or satire, especially those in areas where a grade-school education is like having a PhD here in the US...
Any idiot should have been able to discern that this would cause an uproar. I personally thought it was rather funny and marginally appropriate, but I'm about as PC as a Playboy pinup at a daycare facility.