Taken from here
''Google uses an algorithm to determine their search results, it's mission is to index everything and have it available on Google. Now that includes porn, gross pictures of people with their heads blown off and yes even fluffy bunny's.
Part of this computerized machine calculates what should be shown first, second, third, and so on. It's determined by popularity of links, how many times someone clicks on it, and over a hundred other factors.
Also in reply to "what will other countries think of us when they see this". People in different countries see different results. The world isn't revolving around us here in the US and every search engine takes that into consideration when showing search results.
Now, Google built up the huge name you know today by showing relevant results to it's users search queries. Their system works amazingly well. So the truth is a lot of people may not like this image but they sure are looking at it and linking to it so that makes it more "popular" in the search engines eyes.
Google can't just go and remove everything that people find offensive if they did they would lose their integrity to be impartial. So if you don't want the image to come up anymore people need to stop linking to it clicking on it and discussing it all over the WWW because in Googles machines eyes this is a very popular picture of the first lady.
And apparently it is, even though it's for the wrong reasons. But who is to say what's right and wrong or funny or sad.
Not Google that's for sure.''