It's not for the general public to determine what is or is not offensive to a particular person or group. It's up to them, and if they're offended, they have a right to make their point. I agree with walksalone that a lot of this is manufactured activism, and in a less politically-correct time this likely wouldn't be (and wasn't, for a long time) an issue. But if someone is offended, we cannot tell them, "You shouldn't be offended." It's up to them. And then it's up to a judge (if it gets that far) to make the call.
EDIT - I'm the (currently) lone "Yes" vote up there. I don't wholly agree with the phrasing of the Yes vote option, but in the context of the above paragraph in this post, it is "racist" or "demeaning" if someone says it is. What is "demeaning" is in the eye of the beholder, much like what defines a religion is in a person's heart/head. A religion is simply a deeply held belief, meaning that if I truly, deeply, really feel that my water cup sitting on my desk is my deity, the government cannot tell me it is not, and they cannot dictate to me how I am to worship it (within certain guidelines, of course).
In much the same way, the government cannot tell me, a free citizen, that I am not allowed to be offended by something. If someone else is not offended that's OK, but it doesn't negate my offense.