Yes, and it certainly isn't the first. Here are a few more, all of which reference lolcat at some point (all of these I believe are PhD dissertations, assuming I set the filter correctly):

Frigiola, H. N. (2009). The meanings of dogs and cats in U.S. american culture based on movies, cartoons, and consumer goods. Purdue University). ProQuest Dissertations and Theses, http://search.proquest.com/docview/304990738?accountid=12725

Beyer, J. L. (2011). Youth and the generation of political consciousness online. University of Washington). ProQuest Dissertations and Theses, http://search.proquest.com/docview/930881479?accountid=12725

Bacon, J. (2011). The digital folklore project: Tracking the oral tradition on the world wide web. East Tennessee State University). ProQuest Dissertations and Theses, http://search.proquest.com/docview/918226965?accountid=12725

Ellcessor, E. (2012). Access ability: Policies, practices, and representations of disability online. The University of Wisconsin - Madison). ProQuest Dissertations and Theses, http://search.proquest.com/docview/1017548871?accountid=1272...

Helms, J. M. (2010). RHIZ|Comics: The structure, sign, and play of image and text. Clemson University). ProQuest Dissertations and Theses, http://search.proquest.com/docview/305186664?accountid=12725

Rosatelli, M. E. (2011). A framework for digital emotions. Virginia Commonwealth University). ProQuest Dissertations and Theses, http://search.proquest.com/docview/879043137?accountid=12725

Really? Are you also angry about SIRC's guide to British pubs? http://www.sirc.org/publik/pub.html The abstract of this lolcats paper says The research revealed that the LOLCat audience is comprised of three separate groups that interact with and appreciate LOLCats for different reasons. The study also confirmed that LOLCats are operating as a genre, and that the appropriate execution of that genre is central to their enjoyment. That's not obvious stuff, and it looks like some real research was done.

The "earning them a master's" doesn't ruffle my feathers. A master's thesis in itself doesn't mean much; it doesn't have to present new results nor have any impact. Presumably this student had to complete the coursework required for the degree, and his adviser let him wank around with lolcats for the thesis. The thesis alone didn't earn him the degree, and given that the bar isn't that high for master's theses anyway, it's not that big of a deal.

I think it's wonderful. Whether you think it's inane or not (and it is), internet culture is a major part of the cultural knowledge of a large amount of people. I think we can learn a lot of new things about human psychology by investigating how memes are created and proliferate on the internet.

Should we let all internet culture go to waste because it is childish, stupid or bizarre?

On the first point, I might say, "Don't sweat it so much", especially if it yields some new previously undiscovered trend that wasn't widely known prior to the research(i.e. "People who enjoy LOLcats, on average, are immune to the common cold"), but if this were real I would definitely be upset.

The majority of me feels that this is satire strictly meant to explain LOLcats in a way that strongly resembles Master's thesis(especially the manner in which the acknowledgments are written), but another tiny part of me feels compelled to email Ms. Powell and ask if she's aware of this paper.

Meh, don't let it stress you too much. I very much doubt you'll be competing against them in the job market anytime soon. Besides, just imagine how upset you'll be when someone writes a dissertation on "the internets reaction to academies observation of the LOLcats, and it's cross cultural implications of how it widens the chasm between the arts and the sciences".