Raciality and Today's Format idea

CD: Reality by David Bowie

So the racial thing that I referred to yesterday went like this: I was in my second city class (you know, the one with bozo [mr. super clever director class clown]) and a three person scene was happening. the actors were a white guy on the left, a black lady in the middle, and i don't even remember who was on the left. anyway, the lady in the middle had played in a couple scenes before and in each one she had played a stereotypical black female character. although done very well, it seems her range is not what her potential would indicate.
the "assignment" for the scene from carrot-top was to have three objects in your personal space picked before the scene starts (imaginary or mimed of course.) this helps to define your character and put you at ease as to who you are on stage in that particular scene. so the scene starts and they have their objects. dialogue occurs and the afro-am. lady makes reference to two of her objects, a crock pot and a fry daddy, all in another stereotypical black accent. she talks about how she just loves her fried foods, etc. etc.
so there's a lull in the scene and the white actor turns to her and says, "do you have any chitlins over there?"
the whole room takes a collective breath in and everything freezes. i crane my head around the room to see everyone's reactions. some of them are just normally countenanced but a few of them make "holy jeez" faces at each other. i know i was making a holy jeezer myself. i look back on stage to see what everyone's next move is. The actor, I think noticing his slip-up, says after a brief pause, "Because you're a southern cook and all." a gallant save.

My question is: Is this a racist joke?

And here are both sides of the issue as far as I can tell:
Yes, it's racist for him to assume that all black people would have chitlins on them and its inappropriate to make light of stereotypes in an improv scene for the sake of a laugh (which never came by the way.)

However, if she's going to come at you 'all black' isn't it part of the improviser's job to express what everyone is thinking be it subconscious or not? And, isn't he helping to define her character by continuing on the path that she began, i.e. a stereotypical southern black cook.

And how would things have been different had both of these actors been black? I don't know which side I choose. It's one of those situations that has me crossed. When social morays do battle with improv rules i get lost. I abstain and not for political reasons. I'm truly undecided and it bothers me that I can't say wholeheartedly that his comment was wrong. I just don't know.

AND
Today's Format Idea
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When you're taking shots in the dark, think of us.
TARGET

So, I'm going back to Austin to get my corporation off the ground, you know the national touring outfit with old Jury buddies. Anyway, I'm going back and I had an empty night where nothing was going on. Hello, SHOW.
I know that I can't go back to Austin and do the same format I just did a month ago. The audience numbers would be scarce. You have to come at people with new and interesting things in your marketing otherwise they think they've already seen the show.
So, while cruising around Chicago throwing bags of laundry at random people, I brainstormed this beauty: I do a scene with every audience member. It's a solo show where the audience is also the cast. I'm trusting few people will show up for this Thursday show so I won't have trouble getting to everyone. I was just thinking about how most of the audience is going to be improvisers as is the case in a lot of Chicago shows as well. No one ever takes advantage of it, though. I WILL. I may even run outside and grab people from off the street and bring them on stage. I may just improv with all of Austin in one night. I just may.
Well, I'm psyched about it.

Hit the showers,
b