First of all let me remind you that the song she asked to sing was "License to kill". Then somewhere later she makes a joke about available Zimmermans of the world. Making a wild guess, I should say that the bitter joke is about the last year's incident down in Israel, with the supplies to the Palestinians and the bloody ending with 7(?) Turks dead. Elephant memory! (Even though I should say that every body should remember the nasty incident, in order to prevent from happening again) Now if she has heard about Knopfler's Jewish roots, that would explain the rest of the joke.
But yes, even if i am far from the point she was making, it was a joke of poor taste, that in marketing terms, achieved the goal, which is to be remembered, stir the waters to her favor and make people talk about her. Under this light she is very smart. Wink -wink.
As far as her talent, it was more than obvious back in the late 80ies, but made choices that we can not judge so easily, but have affected her career.
Nothing compares to You, was a perfect song, written by Prince, but all that counts is her performance. For that alone, I can accept her eccentricities.