Thats pretty neat. Upon seeing this post i was just trying to figure out how to insert the clown named bubbles joke. Thanks for pointing me at music instead.
Does it? The whole joke is about annoying, repetitive sounds being created near the fella who is being tormented. It seems like a coincidence far more than a reference. I would have expected a tell to draw attention to the reference, like maybe a castle, a butterfly, or a dawn to link back to the lyrics... you know, something besides just four words that happen to be in a song somewhere.
You... really don't get it, do you? The person being tormented is the one who isn't doing anything. That's the joke. Look around him. You've got bubbles being blown, which creates the sound of a person blowing right near your ear and the sound of the bubbles popping. Then you've got the hand organ down the bench, and across from him you have the paddle ball on string, and someone knitting. All are repetitive, eventually-going-to-drive-you-crazy sounds, much like the slow dripping of water is not terrible in anyway, but comprises the chinese water torture.
They might all be little demons in disguise, or merely figments created by the devil, but who cares? We know they're not persons being punished, because they could stop at any time if the action was a torment.