No, that's wrong. There are plenty of legal cases where sexual jokes were found to be creating a hostile work environment.

This conference had rules about conduct because of the problem of men making sexual comments to women.

The comment "Hank" made was not appropriate. Just because the reaction and consequences were clearly awful it doesn't mean he was fine to make those kind of comments.

> So where's the line?

Don't make "jokes" about dongles in a voice that can be overheard by anyone but the intended audience, and make sure you know those people well.