What would you do? #65 - Facing flop push holding PP Kings

Rush poker:

Full Tilt Poker $0.25/$0.50 No Limit Hold'em - 9 players
The Official DeucesCracked.com Hand History Converter

CO: $33.25
Hero (BTN): $73.30
SB: $81.55
BB: $52.00
UTG: $34.90
UTG+1: $67.10
UTG+2: $42.10
MP1: $48.25
MP2: $88.55

Pre Flop: ($0.75) Hero is BTN with Kh Ks
UTG raises to $1, 2 folds, MP1 raises to $3, 2 folds, Hero raises to $8, 2 folds, UTG calls $7, MP1 raises to $16, Hero calls $8, UTG calls $8
Okay. I'm going to say that I probably should have folded this hand when MP1 raises to $16. UTG really screwed this up for everyone, because the bets are awkwardly sized.

Am I nuts for wanting to lay down KK pre-flop? Given the action, can you put MP1 on anything other than AA? Do Rush players play AK this way? QQ?

Flop: ($48.75) Jh 7h 8s (3 players)
UTG checks, MP1 bets $32.25 all in, Hero folds, UTG folds
If I should have folded PF, then this flop does not help me. FOLD FOLD FOLD.

Final Pot: $48.75
MP1 wins $46.35
(Rake: $2.40)