This photo comes (as you can see from the logo in the bottom corner) from Worth1000.com. They run periodic Photoshop contests and apparently get all kinds of clever entries. This one is from the MiniMeMe contest. ie. takeoffs on celebrities based on the MiniMe character from Austin Powers. You can see the original and all the other mini stars here.
Is this photo irreverent? No more irreverent than when I put a tiny Canajun flag between His Holiness' hands. The Buddhist take on images is that they are emanations. A statue of Buddha is in fact an emanation of the Buddha, a replication created by the Buddha to increase our awareness, or our devotion. If you think the Buddha statue or the Buddha painting is created by the artist or the manufacturer, well, that's true. But it's also the Buddha using skillful means to spread the Dharma, to plant seeds which will grow when the conditions are ripe.
Same with this photo. The Dalai Lama replicating infinitely. Skillful means. It's worth noting that of all the celebrities pictured on this site, the Dalai Lama is the only spiritual leader. Why would that be, I wonder?