Actually, this sort of thing is why I like O'Reilly.
Calling Michelle Obama ugly is petty. Once someone makes a statement like that, you can easily write off everything else they say. (It's why I get to write off basically everything every liberal says about Palin, in fact.)
O'Reilly likes to play it straight. Give compliments where they're warranted but hammer away where it's warranted, too. The compliments make the hammering more effective because you're not giving your opponents an easy way to undermine you. They can't say, "Pffft, O'Reilly just has Obama Derangement Syndrome" because he clearly doesn't.
I like Michelle Malkin for similar reasons. Rather than going completely deranged and always supporting "R" and always hating "D", she gives credit and makes attacks on both sides when necessary and warranted.
That's how conservatives are going to take back America –– not by echoing the deranged one-sided insanity of the left, but by presenting a fair view and making it harder for anyone to outright dismiss our opinions. In the long run, people stop listening to the one-track-mind nutjobs. People like Matthews, Olbermann and Charlie Gibson may get their swipes in for a while and they may advance their political agenda in the process but in the long run people get tired of single-minded biased attacks. They stop listening. Meanwhile, people like O'Reilly stay famous.