The Bungalow

So I'm watching this TV show about game show bloopers and they showed a clip from an outtake of the Britsh Family Feud. The question was "Name a polite word or phrase people use to curse." The one girl rang in and said "Bugger." The host and other girl started laughing heartily and the host said "That's very polite, Susie" (or whatever her name was). But it sounded very sarcastic. So my question is: Is this a polite phrase? Or not? Cos I always kind of thought it was. But from that, it doesn't sound like it is. Huh?