Jon Stewart made his highly anticipated visit to The O’Reilly Factor tonight — and the two men seemed to have a grand, jovial time. Despite the fact that Fox News is a regular punching bag for Stewart on The Daily Show, the two reportedly got along quite well during the taping (a Daily News reporter who was on set wrote “when the camera’s off, [they] talk about kids and summer vacations”).

O’Reilly began things on a serious and dramatic note, asking Stewart if he has any “Obama remorse,” to which Stewart eventually replied, “I agree with the sentiment that he ran as a visionary, and he’s led as a functionary.”

Other amusing moments: Stewart claiming O’Reilly doesn’t get asked on Oprah because he’s “not likable”; O’Reilly’s suggestion that Stewart’s new book Earth would be useful for pot dealers because they “can put stuff between the pages”; and O’Reilly repeatedly calling the book “nonsense.”

But then, amid the joshing, came the moment when Stewart laid it all out (3:30 on the second video clip).

O’Reilly: “Isn’t it interesting that a couple of years ago I was target No. 1? Now I’m like 15 on the list. … Did I lose my edge or have I been overtaken by brighter people?”

Stewart: “I wouldn’t say brighter … You’ve been overtaken by a more extreme version of you. You’re like Fox 1.0. You’re the beta version. Fox 2.0 has jumped over you to an extent that I don’t think you could ever dream of, and, frankly, I think you fear. I think deep down inside you can’t believe what you’ve unleashed.”

Watch the chat below, in two parts:

Watch the latest video at video.foxnews.com