I just heard about this mess at TheF-Word.org, and the photo is from the Washington Times article to which Rachel links there.
I have yet to scroll through the other blogs in my feed-reader today, but I won't be surprised if I see some rants about it more than a few places. I recommend reading Rachel's post, though. It discusses how even though the image above can produce a visceral insulted feeling in feminists like me, the idea behind it is "not so historically far off". Here's my favorite part of her post:
The McCain camp was only half-right when it distorted Obama’s innocent lipstick on a pig adage. Palin isn’t the pig; she’s the lipstick on the sexist pig that is the GOP. Palin has aligned herself lock step with a party that, had it gotten its way, would have made the PTA her last stop, not her first. These are people who have inveighed against the reproductive freedom that has allowed Palin to be both a mother and stateswoman. These are the same people who insist a literal translation of creationism be taught in schools from the very Bible that firmly establishes man’s authority over women. These are the people who, for many years, sought to reverse the very gains that led Palin to the Alaska Statehouse. Conservatives are not threatened by the specter of Palin taking on a man’s job, because hers is the brand of faux-feminism that doesn’t threaten antiquated gender roles.