I'm not the biggest fan of Von Trier as a person (although I admire the boldness of his films), but for a film festival that thrives on pushing boundaries, Cannes' reaction to Von Trier's comments are curiously politically correct. While what he said was controversial, and perhaps careless, there is plenty of context to his comments.
Judge for yourself (the clip is worth watching for Kirsten Dunst's reaction alone) :
Dunst admits she was upset by his comments at the time, but insists that his words merely 'came out wrong' & that they are still friends.
Here is Dunst's take on things, just after winning Best Actress at Cannes: