That video originated on the Howard Stern show complete with a mock studio audience. The applause is a running gag, a send-up of the obsequiousness of the real-life "Inside the Actors Studio" program. They applaud when she discusses VD pills versus VD shots. They applaud when she says she is fascinated by puke. They applaud when she describes getting drunk by having malt liquor poured into her ass. They applaud her description of what her ass tastes like. They applaud when she explains that you can smoke meth out of a pipe made out of a lightbulb, but not crack.
The whole thing is a goof. She attributes her oral sex prowess to "bulimia. Years and years of bulimia." She says "my knees are calloused." She says her favorite word is "bukkake." When asked where porn is going to go next, she speculates that "people will start cutting each other and fucking the open wounds." (This, too, is met with applause.)
It goes on for 45 minutes in this fashion before the comment about muslims is made. Whatever nimrod that posted the clip to Youtube had to sit through all of that, and had to have recognized the overall farcical tone of the piece, but nonetheless chose to post the clip without any hint of the context, as if she was being interviewed by fucking Larry King on CNN or something.