Is it victory or failure when we pave over the troublesome parts of history so completely that future generations wonder what we were all worked up about?
The model isn't bad, that's not how this race compensation works, at least all the implementations I've seen. They do it by rewriting the prompt behind the scenes. DALL-E 3 currently does it this way; they even tell you the final prompt in the response. Google isn't the first company that makes an image generator to make this exact mistake by lazily inserting races into people's prompts.
People are just overreacting over a silly toy.