Quote:The space monk is a virgin even at his ripe old age.

Not only this, but he witnessed traumatic events like the boy's father in the act of love-making, and potentially the 'very messy' event where he had to 'clean the floors' when the boy was born.
And this was a battle; his friend (the boy's father) and he 'fought' with the 'beast' (verbal accusations and strong emotions flying) 49 times.

The space hobo is delusional from a traumatic reaction to a romantic turmoil between a love triangle with the boy's father. Perhaps the space hobo is just aware that the boy won't understand.
The boy literally says "oh, rad!" just because a scary monster has a woman's face. He's not old enough to understand. This is literally the space version of "the birds and the bees".