Judaism is also quite "racist". There is only one "chosen" people. Everyone else would be/is a second citizen. Who would join a religion to be 2nd citizen?
In my life as a Jewish person, I've never _once_ hear a rabbi even hint as such a sentiment. Converts are treated exactly as Jewish as those who are born into the faith. What leads you to think otherwise?
The fact that modern practitioners in your geographic locale of choice aren't as bigoted as their more literal brethren doesn't mean much, except perhaps that there is hope in undoing the more harmful superstitiousness of religion by raising quality of living (for all, regardless of faith).
Apparently "God" decided that not all the people are equal. I could adopt Judaism customs but I would could never be descent from ancient Israelites. This reduces the number of people interested to join Judaism. That was my whole point.
As far as discrimination/racism is concerned I think most of the religions(inclusing Judaism and Christianity) have some extreme(i won't name them) and less extreme (i.e interfaith marriage) views but fortunately most people care less about them(and religion in general) and more about their well-being/getting along with everybody.