Exactly, but I think the parodistic element is important as well. We expect (both from all the similar stories about genies and all the less wrong posts about what genies can be trusted) that he made a seemingly useful wish that backfired, presumably in a humourous manner (like how "The building explodes and your elderly mum is blown into the sky" is humourous, in a slapstick manner). We think he's going to ask for something he wants, but instead gets something he doesn't want, when he instead asks for something he doesn't want and gets it.

Also, you're obviously right when you think of "King Midas is starving to death. How? Magic." has no clear genre. It's a morality play about wealth and not making stupid wishes if the answer is "He used magic to wish for all he touched to turn to gold, not realising this meant his food as well. Being unable to digest gold he started to starve." and a joke if the answer is "He used magic to wish to starve to death. What a maroon!" Also, regarding OP, just making the answer magic is as silly as "Why is that man wearing a suit? Economics" and "Why is King Midas starving? Biochemistry."

I also think part of the insight is that by the time he has the other two things, it doesn't really matter what he has for a head.