Being able to see Tedd's eyes and mouth helps make it clear that he's just joking in the last panel, SO I'LL LET THAT COMMENT SLIDE O_O
Seriously, though, it's best not to take Tedd's least appropriate and rude comments too seriously. This doesn't make them okay, but he is mostly just making bad jokes and doesn't know better at this point. Mostly.
Looking at Tedd's actual behavior with Grace and the things they do together, though, his bark is waaaaaay worse than his bite. ...Which is a pretty horrible expression to use here, but whatever. Point is, he's mostly just talk. He's perfectly content to cuddle and doesn't even attempt to make it more than that. Again, this doesn't excuse some of the stuff he says, but his actions speak too, darn it.
Of course, speaking is an action. It's a free action and won't use up a player's turn in a round of combat, but it can still be costly.
Comic commentary added Sep 21, 2014