I've not read the entire thread just the first few pages, but to the OP I would
have reported it.
Here in the UK such language would be considered to be shocking and totally
inappropriate for the workplace environment. But there again a lot of work has been
done over the years to stamp out racism in the UK. I'm not saying it's perfect but
you generally do not hear language like that in the UK workplace at all.
In my current job working for the civil service, at best this would have attracted a written
warning, maybe more.
You did the right thing in my opinion. People have to realise that this kind of language is not
acceptable. The more they are allowed to get away with it the more they do it and the more
endemic it becomes in society.
If people want to express such views in their own homes or have such opinions, there is
nothing that can be done about that, but in the work place they need to understand it is
not acceptable. Maybe if more people had challanged this person in the past, they would have come
to realise they are the ones who need the attitude adjustment.
Incidentally if it had been the other way around a black person making derogatory remarks
about a white person, or group etc. I would have said the same.