Whether Rock's joke was out of line or not is not the real issue here. The real issue is that an actor was allowed to get on the stage and physically assault a presenter and how the situation was handled.
In this case, Smith was NOT escorted out, was allowed to receive his award AND got a standing ovation.
Now, if you put different actors in that same situation, do you think it would have been handled the same exact way? I do not. If a white actor had done that to Chris Rock, he most likely would have been escorted out of the building. If a male actor of any color had done that to a female presenter, there is no way he would have been allowed to stay. If the presenter was a white male actor, chances are nothing would have been done and the presenter would have been vilified. If a woman, perhaps Jada herself, had gone up there and smacked Rock, she would have been supported and nothing would have happened.
In Rock's defense, he may not have known about Jada's medical issue and thought it was a fashion style choice. The fact that he and Jada worked on the Madagascar movies together and has known Will for many years, he may have just been trying to joke around with a friend/co-worker.
But the fact that a presenter was assault and the show continued without interruption, sets a bad precedent for any future presentations. Comedians and actors roasting each other has been affluent in Hollywood for nearly a century now. Almost every awards show has some sort of ribbing of the audience. Whatever actions the Academy takes, it may change the course of how these types of events are handled and what presenters may and may not do on stage.
Will could have just as easily walked over to the side of the stage and motioned for Rock's attention and then he could have told Rock to apologize. He could have waited until after the event to confront him. There were numerous ways that situation could have been handled. Either way, striking a presenter/host is absolutely wrong, no matter the person says.