I think it shows Karl's character here. He's not saying how odd they are or that they should be doing things for other's amusement. He's genuinely happy for them. That they have a place made for them and that they are in charge. I think that's why he's so dumbfounded by the reaction he gets. He's just thinking how grand it is for them and that they're doing well. Not that they need to be there and the only worth they have is as an oddity.