I suppose in many ways things are better in that its understood by most now that certain words are insulting and upsetting to others and that racist rants shouldn't be tolerated.
Racist rants, in my opinion,
must be tolerated. As must all other forms of hate speech. Tolerating such speech achieves two things, both important.
The first is that it proves, beyond a shadow of a doubt, that freedom of speech is alive and real. Freedoms are defined by their boundaries, not by the middle.
The second is that it exposes such speech to the light of day, to light and logic and counterattack. The sun is the world's best antiseptic. To drive such speech underground (and let us be clear, one cannot stop people thinking and saying what they will in private) is to court hidden agendas, conspiracies, festering wounds, and the illusion that all is well.
Whilst there are underground conspiracies and racist groups and other such monstrosities in US society (one presumes in the UK as well), many of them feel comfortable speaking their minds in public. And that is well. They are known and identified. Their words are easily confronted with logic, openness defeats the ugliness of reasonless hatred.
And frankly, there is nothing people who hate like better than to be oppressed. It gives them a reason to believe as they do (as they see it). They have an enemy who is actually after them, as opposed to imagining such things. Some few are attracted to such a lifestyle. Not the kind of thing one wants to make seem justified in the least.
Let the KKK march. Let the neo-Nazi's rally. Ignore them. Laugh at them. Counter-demonstrate. But make it clear that though they are plainly free to speak their minds, their minds are full of garbage; and the world can clearly see it.