White in white highlands and islands does indeed refer to skin colour.

    In most cities that have attracted non-white immigration, the poorer quarters in what is known as the zone in transition are ususually inhabited first, as housing is more affordable. Alongside these are prosperous areas with expensive housing...the highlands, and areas outlying the chief areas of immigration, the islands.
Asian is normally capitalised when referring to a group of people, if it is a noun rather than an adjective,lower case if it is a more general adjective. I'm a lazy typer!
The red flowers were the British Legion Poppy appeal for remembrance Sunday, raising funds for the welfare of former servicemen. No celebrity or politician could afford to be seen without one at this time of year. Try to wear a white one ( for peace) and you're likely to be lynched.