"... Baron Cohen planned to appear onstage as a blue-skinned, female Na’vi, with [Ben] Stiller translating 'her' interplanetary speech. As the skit went on, though, it would become clear that Stiller wasn’t translating properly, because Cohen would grow ever more upset. At its climax, an infuriated Baron Cohen would pull open 'her' evening gown to reveal that s/he was pregnant, knocked up with Cameron’s love child, and would go on to confront her baby daddy as if s/he were on Jerry Springer."
Maybe the problem was just that it's bad — or not good enough to justify lowering the taste level. We (might) laugh at the Jerry Springer show, but the Oscars are immensely glamorous, and crudeness is out of place. Out of place can generate humor, but who should be permitted to appropriate the glamour for comic effect and what are the costs? Isn't it mostly women who enjoy the Oscars? Quite aside from how James Cameron will feel, how will the show's natural audience feel?
But let me go one step further. Here's my theory: The Hollywood elite want the Democrats health care bill to make it through, and one stumbling block is abortion. The producers have therefore deemed this not to be a good time to highlight and laugh about undesired pregnancy. The unwanted unborn child is an overwhelmingly serious matter for people who care about the right to life. Don't antagonize them with edgy, blatant material. Not now.