Sure, if you see it that way, I can see how you might enjoy it, especially if the comedy worked more for you than it did for me. I saw it more as a Defenders story with comedy added - like the Giffen/Maguire JLA - possibly in part because I don't find it that funny. But if it's meant to be a MAD style parody, of course it's open season on everything - though even then, the best parodies highlight the absurdity inherent in the original, rather than adding new things in just for an easy joke.
It's also partly a matter of taste - with this kind of character, I prefer comedies like the Abbot and Costello movie with Dracula, Frankenstein, and the Werewolf, where the monsters are still scary and the comedy comes from Costello's reaction to them, rather than making the monsters themselves comical. I understand that this analogy doesn't apply in your case, since you don't find Dormammu or Marvel's demonic characters in general all that impressive.
As always, I'm just talking about my own reactions, not trying to tell anyone else they shouldn't enjoy a comic because I saw it this way or that way. And I freely admit that I probably wouldn't have minded the changes to Dormammu if I'd found the jokes more funny - as in the case of Umar, where I was mostly able to enjoy this new version, even though it was quite different in some ways to what I was used to.
Most of the things Ditko drew look goofy by today's standards. Fortunately others were more successful in making the Dread One look threatening.
Which issue is that from? Don't think I've read it.
I think Ditko drew a great Dormammu, myself, but I much prefer what became the standard version, with the basic, anthropoid body and flaming/smoking head. For me, it's one of those classic designs that's so perfect in its simplicity that any additions detract from its effectiveness - the Black Panther is another example. And like the Panther, it took a while before the artist settled down to a classic version that was streamlined from the first attempts, as seen in codystarbuck's example of Ditoko's Dormammu (though it looks to me it might have been drawn by someone other than Ditko).