I agree. Of course, I think one reason Lois is doing it this way is because She doesn't necessarily know who Spy Smasher is, or why she's doing what she's doing. She's warning Oracle without blowing her own cover, and also ensuring for herself that her connection is indeed full of shit.
Just as an aside, I don't think that MAD is a particularly smart move in this case, because Babs would be so much more screwed than Lois it's not funny. Not only would she be without any sort of protection, she would have pissed off Superman, and a whole bunch of the JLA and assorted teams. Probably including Bruce. Now, Lois would be under the protection of "if you fuck with her, Superman (among others) will find you. And he will not be happy" However, Babs would have alienated a whole bunch of people, and friends would be a precious commodity indeed in that situation.
Of course, the whole thing is ridiculous, because Lois was obviously not actually threatening to reveal her. (I almost wrote "out" her, but...) I agree that the situation is silly, but it's always nice to see how a Super and a Bat work together and against each other, which I think was the broader point here. I mean, no matter how much she tries to deny it, being a Bat is still a big part of who Oracle is.