I love that bit, one of his best. I have to say though that I think he's off-base with the cripple bit. If I may:
Etymology
Anglo-Saxon crypel, cognate with crēopan, "to creep", "to crawl"; confer Dutch kreupel, German Krüppel, Old Norse cryppill.
I think it's hard to say there's no negative connotation with the etymology of the word. Even if you assume that originally the term was just used to refer to people who couldn't walk, both "creep" and "crawl" are loaded terms, plus it's inaccurate to use a term that describes a certain type of movement as a blanket reference for all handicapped people.
Most of his other examples are illustrative of top-down language manipulation designed to keep people increasingly complacent. I think the rejection of "cripple" as an acceptable word (much like the rejection of "nigger" or "negro") doesn't jive with the rest because it's an example of a bottom-up change in language with the goal of diminishing built-in prejudices within our society.
In any case, it's still a really funny bit.
Wiggle, wiggle, wiggle like a bowl of soup
Wiggle, wiggle, wiggle like a rolling hoop
Wiggle, wiggle, wiggle like a ton of lead
Wiggle - you can raise the dead
Pex Lives!