That's part of his schtick.
As for how I would play it, I am assuming you mean from the non-Matusow side of things, right? If so, this is actually close to how I would have played it.
Against a random player, I would play it differently (and check the flop), but against Mike, I disagreed with what Norman Chad was saying and think they guy played it beautifully. Remember, Mike is capable of making a big bluff (even all in) with nothing IF he thinks you have nothing and will fold. And with this board, I have to think the best way to entice Mike to do that is to go ahead and fire at the flop.
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