Getting His Fill

A: So your roommate moved out?
J: Yeah.
A: Did he get his fill of West Hollywood?
J: I don't think so - he brought home a different guy every night the last few days.
A: Ah, so he did get filled, so to speak.

The two people having this conversation continued after that last line without so much as a pause, unfazed, as if they had been talking about the weather. Meanwhile, two of my friends and I sitting nearby listening to this conversation all immediately reacted in disgust. Generally I enjoy a dirty pun, but the combination of shock and inappropriateness left me with my mouth hanging wide open. Soon the conversers stopped to acknowledge our nervous laughter and looks of horror having no idea what would have elicited such a response. So I've got to ask: funny or too far?