There is not a whole lot to criticize President Obama about on this. I have seen reports the Whitehouse initially thought they were being punked. However, there are some neat comments out there poking fun at the Obamamania that he will win the Cy Young award, he will win the Heisman Trophy, that he will win every 2012 Olympic gold medal, and so on.
However, when the laughing is done and it comes time to think about this, it is obvious this award is not serious. It did not just become "unserious" but this prize became unserious when Yasser Arafat won it (Jimmy Carter did IMO earn the award by brokering a peace treaty between Israel and Egypt which is an accomplishment despite the fact the treaty does not mean all that much either). Yasser Arafat won this prize and is an insult to genuine peace advocates who have received the prize and he is not the only such person on the list.