When Rachel said where this was first published, I knew it was satire because I have that book. (Haven't read it, though.) However, I haven't ever really felt moved toward good or bad by any of the (admittedly-limited) Esther Friesner I've read.
The satire was WAY too over the top; it passed satire, paused at parody, and moved into the 1990s equivalent of elves-as-written-by-the-people-who-would-eventually-invent-lolcats. I kept waiting for it to get interesting and it never really did. Then it became PG-13 (all the sex references), but in a teen-comedy fashion that has been done better in just about every teen comedy.
I appreciate that the editors may have enjoyed this when it was released -- and in 1990, my sense of humor was just about right to appreciate this story (of course, I was 12 at the time) -- but it hasn't held up over the years.
As for the reading, Rachel did a good job, but I don't know what happened in her recent move to turn her microphone (or sound card) into what it's become. The good reading was tarnished by the abominable quality of the audio file, made all the more noticeable when Ann came in to do the feedback, advertisement, and administrivia. Perhaps the good microphone/computer combination could be unpacked before the next time Rachel reads a story?
Overall, I did not enjoy this episode. Even the quote at the end seemed like they were stretching to find something that fit.