Yes, I agree that Obama's "lipstick on a pig" line was a preplanned "wink-wink" coded reference to Gov. Palin's comment at the RNC, as evidenced by the crowd's response.
However, now that the charge has been leveled and gained blog and media attention, what damage to Obama is going to ensue has been done. It's past time to move on.
The McCain campaign is going off the rails if they drag out this discussion, and especially if they keep trying to extract an apology from the McCain camp. This will only destroy the momentum of the McCain campaign as the "mavericks for change" if the public instead come to see them as just engaging in the same ol' "gotcha" tactics the the Obamabots have been employing.
Thus far since Aug 29th, the McCain team has masterfully controlled the course of the campaign and in the process, totally gummed up the Obama campaign tactics by moving things to an unfamiliar terrain. This kind of back-and-forth jabbering over possible insults takes things back to familiar environs, which favors the Obama campaign and also gives them breathing room to regroup their forces.
Gov. Palin has been doing just fine handling all the atrocious slurs and slanders that have been slung at here; she's been standing up for herself and hasn't demanded any apologies. She just withers her opposition with her poise and umflappability. So why should the McCain supporters step in now to "protect" here against such a relatively minor transgression, by comparison?
When the "men" protest, this makes Sarah out to be a weak women in need of men to rescue her; when the "women" protest, that protrays Sarah as a victim, again undercutting her. Leave it entirely up to Sarah whether to call out the Obama campaign or let things drop - and hopefully she will do the latter.
Furthermore, this outcry is just an echo of the dispicable "politics of outrage" that the Democrats on the left have perfected for decades. The Republicans shouldn't compete on this quickstand with the experts; they're just going to embarass themselves, look silly, and destroy their reputation. Indeed, the Obama campaign has already made several effective counterpuches.
So my advice to the campaign is to stop digging. Leave "outrage politics" to the Democrats.