Awful and unfunny. The Update rap bit with Sarah Palin dancing and gesticulating to the "Alaska Rap" was almost as offensive as MC Rove. Sorry -- I don't think it's hilarious or awesome when race-baiting white people like Palin or Rove participate in a spoof of African Amercian pop culture.
ADDING... It was awesome that they spoofed a Palin press conference even though Palin is too cowardly to hold a real press conference. Given the fact that SNL generally opens with sketches about actual political events, I wonder how many casual viewers saw the sketch and said to themselves, "Wow. Did I miss Palin's press conference this past week?"