It seems to be a bit of both. The article does cite a lot of comments agreeing with what the older relatives said and getting a bunch of likes. So some people are laughing at how horrible and racist it is, but some are laughing at the unapologetically saying what we're all thinking aspect.

A lot of racist jokes are just people saying their biases out loud and unapologetically, and then the racists laugh because they agree, and they get to affirm those beliefs. You might get some people on the other side laughing at the absurdity, but for the people of the race being made fun of, it just feels like the attack it is. Especially when the subject is serious and you can't distance yourself from it, and nothing is more serious than genocide.

Like if you showed these to a Palestinian child they'd probably become depressed and scared by it. If you showed these to a boomer israeli they would probably laugh at it and say they're right.