I had someone say something like this to me once when I reported there was a problem with the project I was working on. He was perfectly straight faced and totally believed it. "It's not a problem, it's an opportunity".
I felt like breaking his legs and asking how the opportunity was working out for him.
I've used the phrase myself a few times since, but only with a voice dripping with irony.
Calling a pile of cr@p a rose doesn't make it smell any better, and changing words like that devalues communication and just causes confusion.
I swear, if I ever end up back in a big company and someone says "We've got an opportunity here" I'm just going to say "Great! Enjoy it, I'm going out for lunch."
Don't try this at home or at the job folks. Leave it to the pros. Wally makes it look so easy and SINCERE! The sincerity is what keeps him out of trouble.