@Wilso,
Yeah, I wasn't addressing that part -- just the question of why Setanta and Roger (Americans) weren't aware of how fried chicken can be racially fraught while Patiodog, Diest TKO, me and I think someone else too (Americans) WERE aware of it.
In terms of this specific issue, which I haven't really weighed in on yet (mostly just reading along), I think that:
1.) Purely in an Australian context the ad is probably fine. (I also wince at how the white guy had his head in his hands and was shaking his head at the boistrousness of the Windie crowd -- smacks of condescension/ paternalism -- but I get that in context it just didn't have the resonance it has here.)
2.) It's a video that can be seen worldwide.
3.) In an American context it isn't fine.
4.) KFC is an American company.
5.) It makes sense that as such they pulled it.