That was an example of a very short-lived 80s look called Memphis: neons and pastels, plastic textures, severe shapes, pop-art style patterns on surfaces. Decorators who promoted the style typically advocated having one or two pieces of it, to give a space some "fun." The visual joke in this scene is poking fun at the Bette Middler character as a nouveau-riche hoyden so desperate to be trendy, she's done the entire mansion over in the style, creating a visual nightmare - notice the contrast when DeVito walks into the room that is presumably, his private office. It's a Memphis-free oasis in the house, done in a very traditional masculine style. Even though the Memphis style was at the height of its popularity when this movie was released, audiences still laughed at this scene and this movie may have been largely responsible for its rapid fade-away.
This is your personal opinion, based on your taste. Memphis is still running and selling its pieces and people such as David Bowie or Karl Lagerfield, which probably understood something about style, decorated their houses entirely with Memphis. You can just google it.
Most of the objects in the house are American pieces 'inspired' by Memphis Milano. The Red chairs in the entrance foyer at 0:17 are genuine Memphis Milano by Peter Shire. The chair De Vito sits in is also genuine Memphis Milano (I am certain it has been custom made because these chairs are based on the 1982 'Lido' sofa by Michele De Lucchi for Memphis Milano). *The most important piece in the house is the small tall table with wavy legs in the bedroom at **0:40** (next to the entrance), it is a pre-Memphis Milano piece designed by Ettore Sottsass for Studio Alchimia in 1979.*
It’s almost like that was an experimental mansion that was designed by the Memphis Group and it also has a ton of stuff such as the furniture that was designed by the Memphis Group.
I'm a Memphis collector and there is no original or authentic Memphis design shown, only similar designed knock-offs in the style of Memphis and other Post Modern design.
There is a Sottsass table in the bedroom from Studio Alchimia. Some Peter Shire 'Bel Air' chairs can be seen in the foyer (from Memphis Milano). I'm sure the the armchairs (shorter versions of the Lido sofa) are original - I have never seen this version of the 'Lido' sofa anywhere else though.
its 1980's. movie came out around 1988. Google Danny DeVito and you'll see he's 30+ years older then this. Its actually a good movie, just that the fashions and décor are a bit out-dated now. But then again, trends do come back into fashion??