I saw "Bruno" on Friday night. I must say I wasn't offended by it at all and had a good hearty laugh. Bruno is ridiculously uber-gay, and is in many senses a homophobe's worst nightmare. By confronting homophobes with this character, the film is much more a parody of homophobia than of homosexuality. (In a similar sense drag as done by the gay community is not typically a parody of women but something more complex.)
I did feel slightly uncomfortable after the film ended though - the straight men in the audience looked particularly shell-shocked and horrified. I felt that during the film women in the audience laughed more loudly than men did. How beautifully ironic that Bruno is drawing in so many straight people who would never otherwise see any kind of gay film.