Hard to hear, but basically she jokes that we all wished that it was Steve O who died instead of Ryan Dunn. And as you saw, Steve O was not amused.
As a fan of both Ryan Dunn, and of these Roasts, I see nothing wrong with it. It's a ROAST. There is no such thing as too far. Because you see, here is a little something that not many people are aware of.
"The last time this many nobodies got roasted at least the band Great White was playing."
That right there, was a quote from Steve O, who made a joke about the people who died in the Station Nightclub Fire back in 2003. You know, that one where the pyros from Whitesnake set the place on fire, killing 100 people, and injuring a couple hundred. Comedy Central of course yanked that joke.
So don't feel bad for ol Steve O.