Yes.
Also no, its not the funniest scene, but it has been the internet's favorite one to make videos out of for a little while now. Personally I think the funniest ones are the ones where the whole town is involved... So take your pick there...
There are so many great lines when the town gets together.
One of my favorites is the angry mob going after the "alien". Lenny's line is hilarious and Willie somehow manages to top it.