I always hated this joke because to me understanding binary does not mean understanding two's complement. Thus the joke took a on a meta-joke: using two bits to represent a binary state instead of one bit. If the joke teller understood binary in their heart they would use a proper enumeration without just using integers.
The usual:
Then there was: Which is a riff on: Then along came: Yours, on the other hand, just doesn't really make sense. Maybe I'm missing something ...