I also didn't like Jeremy calling Richard a "rampant racist". I thought it crossed a line. I don't care if it was in jest. That sort of thing is Serious Business, IMO.
What line? Are people going to start calling Hammond a racist because Clarkson said so? Hammond's remarks were nasty to start with, and Jeremy's comic exaggeration helped defuse them by comically make Hammond look worse than he actually is, and reminding us that he actually isn't a rampant racist, just someone who made some very bad Mexican stereotype jokes. By exaggerating how awful Hammond was, the show did the right thing.
Oh, and for some reason I loved the way May said "buenos dias." It probably has something to do with his bizarro-world attempt at a Mexican accent.