I thought it was funny, too. Probably because I'd already seen the first one and already got over the "What the heck was that stupid thing?" and learned more about the origins of how it came into existence. I think the narrator really does a good job of being dramatic and his inflection and tone are perfect for all the terrible spelling mistakes and crazy things the story says.
It's pretty funny if you think of it like those Mystery Science Theater 3000 movies. They are so stupid it's fun to watch just so you can laugh at how stupid it is.