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Because it's not just any song; it's an anthem that represents the Queen and all of her subjects. Would Obama have talked over the Star Spangled Banner? I think not.
Having said that, I agree that the band also was at fault. Perhaps the banquet organizers should take extra precautions to make sure this doesn't happen again.
If Saturday Night Live didn't end their season, I could imagine this being the basis of a skit this weekend (except the guy who plays the queen also plays Obama... urk...) Anyways, every time Obama says "queen" a group of guests pulls out instruments to start playing the British anthem, until we have multiple bands playing over each other (and of course, playing over Obama). The final time, it's their Trump impersonator who starts playing, at which Obama pauses, looks at the jammin' Trump in bewilderment, and then continues, which gets Trump to stop playing and start criticizing him, which turns into a list of his faults, ending with, "And Live from New York, it's Saturday Night!"