Ben Watson doesn't look too happy about this

Just curious, if someone tells you they felt offended by something your said or did, is your first response to tell them that they are overreacting?

Whether or not Watson was overreacting is irrelevant. The other guy doesn't get to determine what offends Watson and that would be the exact opposite of the right thing to do. I guess it's a matter of how one is raised because I was raised to apologize if I offend someone, not try to justify what I said or did by telling the person I offended that they are overreacting.
I would have apologized and moved on, well, i never would have made the joke in the first place.

That doesn't mean that Watson didn't overreact. I don't think the other guy was right, but i don't think Watson's reaction was appropriate either.