Not all British humor is "dry and ironic". It's frequently understated, but also frequently wacky, surreal and off-the-wall. Take Mony Python as an example. Groucho Marx would have gotten on perfectly well with the Goons. Sarcasm need not need necessarily be cruel or target others; it's all part of the same dry/ironic spectrum.
(Frankly, the best example of alleged "humor" that wounds others that I can think of is the American stand-up "comedian" Joan Rivers, whose entire schtick seemed to consist of selecting random victims from her audience and verbally savaging them from the stage. There was nothing funny about her unprovoked assaults; the laughter from her audience wasn't amused, it was nervous, "thank god she went after someone else this time and not me". I don't think she'd know "funny" if it leapt out from behind the stage curtains and bit her in the ass in the middle of one of her attacks. ...Er, I mean, acts.)
A lot of people seem to think Benny Hill is (or was) the epitome of British humor. I beg to disagree. I think he was the epitome of "humor imported cheaply from Hollywood". His sense of humor was right there on the level of what 90% of Hollywood seems to think is "funny" — cheap pratfalls, cheap innuendo, cheap smut, and grade-school humor whose idea of "subtle" is to empty a chamberpot over someone's head. His entire repertoire can be pretty much summarized as "If the joke isn't working, just add scantily dressed women and leer suggestively."
To a large extent, Hollywood invented slapstick in the 20s, and became so inordinately proud of its invention that it's never quite been able to bring itself to outgrow it and move on. But in the post-war years, while Hollywood went with stand-up comics and situation comedy, then got stuck in a seemingly endless rut of "N unlikely room-mates sharing an apartment (for some value of N)", British humor spawned the Goon Show, three completely deranged guys doing sight gags on the radio and MAKING IT WORK, and the Goon Show later inspired the Goodies and Monty Python. (Terry Pratchett, author of Discworld, and Douglas Adams, authot of the Hitch Hiker's Guide to the Galaxy, both admit to having been partially inspired by Monty Python.)
So, yeah, Britain produced Benny Hill. (It wasn't our fault, I swear!) But we also produced Monty Python's Flying Circus, Wallace and Gromit, Terry Pratchett, and Douglas Adams. That's my kind of humor.
(On balance, I hope we can be forgiven for Benny Hill.)
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Renaissance Man, Mystic Zen Biker, the Lone Groover, the Eternal Stranger, alone in a crowd, forever trapped on the wrong side of the glass