Not sure I see the same offense as you do CC. I think it is correct english however may be wrong.
If I had said 'she' would that have been better or would the quip come out..who is she...the cats mother?
Regardless I was not meaning to be offensive in calling Ms Gillard 'THAT'...I was clearly refering to my bemusement at people thinking she is attractive (in looks).
and true some men prefer brains...but that was not the issue in question...I think she is very intelligent from what I have seen so far.
