
Watching Spaceballs as a younger kid was similarly confusing. (I shouldn't have been watching it at that age in the first place, of course, but that's what friends' houses are for.) There's a whole bit when Dark Helmet discovers that a large portion of his crew is made up of cross-eyed morons, all of whom possess the surname "A--hole." I didn't get why these dumb guys were called that. They weren't mean, they were stupid!
I don't know when the transition from "idiot" to "mean person" took place, but I don't know anyone that still uses those terms in the earlier sense anymore, so it seems to have been a universal shift. Anyone else notice this? When did the change occur?