This is my theory:
It is not that muffins are ugly cupcakes, but that cupcakes are altered and frosted muffins. The dye on them refers to tanning and the frosting refers to an excess amount of makeup. Cupcakes are whores in the muffin world, while muffins are pure and natural.
Now tell me, whose the ugly dessert now?
Monica: Muffins are just ugly cupcakes.
Jared: Actually, cupcakes are just altered muffins with makeup on. I call this the conspiracy theory against muffins and cupcakes.
Belle: So cupcakes are whores?
Jared: That would be weird because cupcakes are inanimate objects. But yes, exactly.