The title is a reference to Babes in the Wood, also known as Kids of the Wood, a traditional children's tale about children lost in the woods.
Daffy's quote at the end, "What a revoltin' development this is," is a catchphrase used by William Bendix on the radio program, The Life of Riley.
While Daffy Duck is disguised as American Indian female, Pocahontas, his question, asking Porky Pig if he was early English Pilgrim, Captain, John Smith. Porky answered back that he is not married. Pocahontas' only husband's name is John Rolfe, not Captain, John Smith.
As Daffy's character developed over the years, he went from being an unhinged loon to a greedy loon.
At the time of this production, the term boob generally meant a bumbling, silly, clueless type of character. Rather like The Three Stooges. Of course it had another more voluptuous connotation, but such things were not as openly permitted as today.