I think people define "racist" differently. Some see it in terms of systems. Some people think calling out racism is itself racist. Some view certain types of jokes as being a sign of being racist. There are as many definitions of the term as there are people.

I have repeatedly mentioned there are limits, but my problem with the system you laid out (which I'd argue is far more extreme than what was decided in this case) is that I'm a free speech guy who thinks we're better off when we can discuss issues openly.