As Allahpundit at Hot Air says:
The only reason this is on the media’s radar screen now is because Hamas is using an iconic American symbol of innocence to tacitly justify suicide bombings. Take away Mickey and the illicit thrill that comes with seeing him turned to the dark side and it’s a non-story. As usual.Which wouldn't be surprising either.
Update: here's another article about this from Der Spiegel (via the Newsarama blog). As they explain, "farfur" means butterfly in Arabic, but the character and his intentions are the complete opposite of what butterflies are like.