The reality is, that Sakurai - being a middle-aged upper-class dude whose shown no real vocal anti-racist beliefs, works in a conservative company, and has a bit of history including racially insensitive content in games he's directed - is probably a little bit racist, out of ignorance at bare minimum, and possibly out of active or passive/internalized prejudices. He's not the first in the industry and it's doubtful he'll be the last. How comfortable you are with that is going to vary.
I mean, it's the same way with portrayal of female characters - he's talked shit about CERO being too strict more than once. He's a good game director, with a very old-school mentality, and with that comes some hard to defend choices when it comes to the portrayal of marginalized groups.