Hanna thought his 'live a little' comment was funnier.

"Hey, who knows! Maybe they live in a jungle? Or on the plains?" If there are plains around...but, still. "Can't you just think about it? I mean, it's a dragon! I mean, if Sephi-what's-his-face is here, what about Smaug? I mean, if you give him enough compliments we could probably run away."

You are dead, he smells dead. Doesn't sound so tasty, right?