In fairness, after playing the snippet of O'Donnell's 14-year-old comment, the ABC host wondered, "But, I think a lot of people might watch [the clip] and say, what's wrong with she said?"

The segment also featured conservative radio host and Tea Party activist Dana Loesch who chided, "She's talking about masturbation. It's not like she's wearing black socks and getting caught in hotel rooms with call girls and stuff. If we want to point fingers on bedroom antics, we can do that."

Stephanopoulos did bring up the gloom hanging over the Democrats in the midterm, but he turned to the subject of whether the "extreme views" of Tea Partiers will "cost Republican seats that they otherwise would have won."

A transcript of the September 16 segment, which aired at 7:05am EDT, follows:

GEORGE STEPHANOPOULOS: Let's get into the debate now. We're joined now from St. Louis, Missouri, by radio talk show host and tea party activist, Dana Loesch. And from Washington, Democratic strategist James Carville. And, Dana, let me begin with you. You saw Joe Biden out there last night. There's the White House message. Moderates need not apply to the Republican Party.

DANA LOESCH: Well, I've seen several elections where moderates in the Democrat Party have been run out on a rail, like Elijah Lovejoy. What we're seeing with the Republican Party in the particular case of Mike Castle, I think calling him a moderate is especially generous. This guy's record was indistinguishable from the Democrat to which he wanted to run against in the general election. And what we saw- This was the people of Delaware that spoke. This wasn't a group of Republicans. They tried to nominate Mike Castle. But, the primaries are all about getting the people's voice out there. That's what we saw in this primary with Christine O'Donnell. And the people made their voices heard that they were unhappy with Mike Castle's record.

STEPHANOPOULOS: And, James, there is some evidence out there that Tea Party is not just on the fringes right now. Want to show you the numbers from our latest Washington Post/ABC News poll. It shows that Tea Party supporters now make up 44 percent of the primary electorate. Those who really, strongly support the Tea Party, almost a quarter of the electorate. And these guys overwhelmingly are focused on Democrats. 92 percent Of them believe that Democrats don't deserve re-election. That is a warning sign for the Democrats in November.

JAMES CARVILLE: Well, certainly. And congratulations. The Tea Party- This comports with the research we did at the Democracy Corps. The Tea Party is more powerful to the Republican Party than African-Americans and organized labor combined are in the Democratic Party. And you're exactly right, George. People like Christine O'Donnell are part of the mainstream Republican Party right now. If you look at what happened in New York State. Elijah Lovejoy? What about Robert Bennett? What about Murkowski in Alaska? What about Mike Castle? I mean, been these people have been going on about Elijah Lovejoy, but I know what's happening over there. And the Tea Party is the Republican Party. This is not a fringe element of the Republican Party. This woman, O'Donnell, is right in the middle of it. And it's exactly right. They are a very, very powerful force. And they're running that party right now.

STEPHANOPOULOS: And, Dana, the Democrats are hoping that candidates supported by the Tea Party, candidates like Sharron Angle in Nevada, like Rand Paul, like Christine O'Donnell, because they lack experience or have what some would consider extreme views, will cost Republican seats that they otherwise would have won.

LOESCH: I don't know if they have extreme views. I don't think the Tea Party movement is mainstream- I think it's mainstream America, period. We've seen so much data coming up from the past year, that the majority of Americans, they believe that the Democrat congressional agenda is too extreme. They identify with the individual liberty and smaller government that the grassroots movement espouses. And candidates like Sharron Angle and Rand Paul, these are people- it's not beltway experience or abstain that they don't have. It's the fact they're standing up for principles that the majority of Americans want. I want the government out of my pocketbook and my bedroom, and everything else. And hat's what the majority of Americans want. That's the platform that these candidates stand upon.

STEPHANOPOULOS: As someone wrote in the Wall Street Journal this morning, James, it's the spending, stupid.

CARVILLE: Well, clearly, Christine O'Donnell doesn't believe in spending, particularly her own money, because, she's a deadbeat. She doesn't pay her loans back. There's a lien on her house. We could really classify her as anti-spending. In terms of getting in the bedroom this, woman has run against masturbation. I don't- That seems to be a lot of government intrusion, to be honest with you. It's right in the New York Times this morning. I'm sorry. She's really against spending. She's not going to spend any of her own money. But again this, is the Republican Party. It's anti-spending. It's promoting a bunch of deadbeats.

STEPHANOPOULOS: I think we have the clip that James may be referring to. So, why don't I show that and get you to respond? Here it was, I think, in 1996 on MTV

O'DONNELL: The reason that you don't tell them that masturbation is the answer to AIDS and all these other problems that come with sex outside of marriage is because, again, it is not addressing the issue. You're going to be pleasing each other. And if he already knows what pleases him and he can please himself, then why am I in the picture?

STEPHANOPOULOS: James brought it up. But, I think a lot of people might watch it and say, what's wrong with she said?

LOESCH: Yeah. She's talking about masturbation. It's not like she's wearing black socks and getting caught in hotel rooms with call girls and stuff. If we want to point fingers on bedroom antics, we can do that. I mean, this is- She didn't say anything- some of the stuff she said in her past, I don't think anybody, if you look back at the history of everything Mr. Carville has said and, George, you and myself, not everyone is going to be perfect. Perfection, if it were required for public office, nobody would be fit to run. But, I don't like the class warfare, sort of, angle that Karl Rove seemed to have taken when he was speaking about her. That's something that bugged me a little bit.

STEPHANOPOULOS: James, you get ten seconds to end this.

CARVILLE: Well, look, again, like I said, she's a very fiscal conservative. She doesn't believe in paying her bills. And she equated masturbation to adultery. And, boy, if that's the case, the Iranians would be stoning a lot of people in this country. I'll tell you that.

—Scott Whitlock is a news analyst for the Media Research Center. Click here to follow him on Twitter.