@dlowan,
Though now my fairness meter is kicking in.
The analogy re the not allowing revealing clothes in ads is false, in that revealing clothes are a fundamental part of Oz culture, and it is ridiculous to think of censoring that.
(Though Oz companies hoping to appeal to a strict Muslim audience would do well to eschew them...and pork and such.)
A white man handing out disgusting food to black people isn't a fundamental part of our culture (unless we go back to handing out white flour and sugar to Aboriginal folk...and we wouldn't go near THAT as a fun activity in an ad!) isn't.
I do think that:
a. It's reasonable that KFC, given the apparently racially perilous nature of their product in their home market, should ensure that an expert in US racial arcana is part of their promotional decisions.
b. It's fine to pull the ad if it's hurting people or their business.
c. People assuming the ad is racist without questioning their US-centric view of the universe are being stupid and ignorant.
b. People accusing Oz of racism for having the ad are people I want to punch in the nose.