Even better is the actual context of that line. Eggman has just finished telling our heroes about the Extractor, a machine he created that the Zeti are planning to turn into a Doomsday Device, and Sonic and Tails' reactions are... surprisingly casual.
Tails: And you just want to go smash it, don't you?
In Windy Hill, there are sheep that you can bounce off of if you jump on them (it doesn't do anything but sheer them). But doing so makes every other sheep in the area turn red and angry. Sonic can be overwhelmed by herds of furious-but-otherwise-adorable little sheep.
Even more hilarious is that after landing the first hit on Sonic, Zomom spends the rest of their conversation wildly swinging his sandwich at Sonic, hitting him a few more times and eventually knocking him on his butt.
This exchange between Master Zik and Zomom in "Powered by life force":
Master Zik: I tested the blue one, and he's more powerful than I anticipated. He shows much potential. Zomom: Who cares about him? Now that I'm free, I want to squeeze Eggman until he pops! Master Zik:And eat him, I suppose. Zomom: *burp* Well yeah.
This exchange between Sonic and Zeena in Frozen Factory. Roger Craig Smith's delivery just sells it.
The Stinger shows Orbot and Cubot stumbling upon part of Eggman's mustache sticking out of the ground and pulling him out to find that he survived the fall. Unfortunately, the other half of his mustache didn't. Orbot tries keeping this a secret from him, but...
Eggman:What's wrong with my mustache?!
(Orbot and Cubot run away screaming)
Orbot asking to be Sonic's sidekick if he fails to rescue Tails.
Zik and Zomom's lines after defeating them in Lava Mountain Zone 1.
Zik: You beat an old man. Are you proud? Zomom: Mom was right, I am a failure.
Sonic's really turned up his snarkiness for this game, as exemplified by this cutscene when Zazz is introduced:
Zazz: I've been itching for a fight all day.
Sonic: I think you're itching because you need a bath.
Zik's introduction, in which he displays just how little his age has slowed him down by knocking Zazz and Zomom flat on their asses. Keep in mind that he is by far the smallest of the Deadly Six; Zomom is probably around six to eight times as large as Master Zik is.
Sonic spends all of Frozen Factory Zone 2 inside of a snowball. When you complete the level, you get a hilarious victory animation of the snowball hopping and spinning around.
Prior to Frozen Factory Act 2 (Act 2s of each worlds are the levels where the first boss battle with the resident Zeti takes place), Zavok finds that Zeena is still busy with her nail art instead of being outside to fight Sonic. Instead of getting mad, he charms her into going. Travis Willingham's performance totally sells it.
Zavok: Well what if I told you that you were the only one I trusted to be fast enough...
Zavok: smart enough...
Zavok: ...and pretty enough...
Zeena: Go on.
Zavok: to beat the blue nuisance?
Zeena: Well, I'd say you got the right girl for the job!
The Deadly Six have captured Sonic with the intent on turning him into a robot. But when they open the capsule, they find Tails instead. Zavok promptly gets mad at the gang, but quickly decides to improvise. What makes the scene so hilarious is that Tails is just lying there like he wants them to draw him like one of his french girls◊, with the biggest "Why the hell am I here?" expression he can make.
The icing on the cake comes when Zor rushes in to tell the gang the bad news, only to find he's a little late.
Zor: Somebody messed up royally, because we don't have Sonic!