I totally forgot to bring that up, but you're right... that was an ABSOLUTE GENIUS AD-LIB but truly completely out of left field. I mean you really have to be hip to the early Bond films to get that reference. I myself would never conceive of that reference, but it was absolutely perfect. That pillow DID look like the white cat in Blofeld's lap!
And I'm agreeing with you that it probably was ad-lib, because Jeff just genuinely broke up into honest raucus laughter. And, AS DID I even on second viewing... because that line and reference was truly memorable and instantly hysterically comedic, if you knew the reference.
And the "Koufaxing" line has already been mentioned as well, as was the "raid on Entebbe" reference. Another pair of brilliant gems!
Just like many of the Seinfeld stories, premises and dialog lines which I still laugh at today as if it were the first time seeing those episodes (which of course it's not), they simply stand up to the test of time as truly hilarious and genuinely funny. It's obvious that Curb is the same kind of show, and the same kind of comedy. And Larry David's obvious and fundamental influence on what made "Seinfeld" funny forever, can easily be seen in his work these many years later. Curb, also, will be funny forever.