"That's not really an answer. As I'm sure you'll remember, punks in 1977 wore swastika armbands because it was the fashion - it was still an offensive symbol. In the case of punk, of course, the entire point was to offend people, but I didn't think that was the idea with Border Morris."
Of course it's an answer. Your problem with it is that it does not fit with your interpretation or beliefs.
I suspect, but don't know any more than you do, that most blacked up sides do it because of the fashion started by the Bedlams in the 70s and do not do it to offend. Some here insist on believing it is either racist or done with intent to offend and will accept no other explanation.