It's a JOKE. Everything from him is light-hearted really, they're just jokes. Just because they're sexual doesn't make them bad. Geez, lighten up people.
I'd rather hear these little one liner sexual jokes than the moaning about Ann for minutes at a time throughout the episodes from others. I'm not even a big fan of sexual jokes just not my style but I'm not gonna get mad about people making them lol...
Daniel doesn't seem malicious, negative, or anything. He's a pretty positive guy making people laugh in there.
I'm more offended that the joke just wasn't very funny.
Also thankfully Ann wasn't around to hear it though considering her reaction to people simply cuddling etc.