In any case, however would you KNOW a dancer was gay? It's not written on his head! And why would it matter? The side I follow a lot, Kemp's Men in Norwich, have a selection of younger (married as it happens) men, VERY old ones (ie eighty, and still leaping about) and NO racist men. At the Morris Ring meeting in Weston-Super-Mare a few years ago, I saw quite a few Indian, Pakistani, African etc Morris dancers, one in a turban. Also, some super young sides, teenagers who did very athletic-style Morris dancing. People who make these silly sweeping statements probably don't know the first thing about Morris. It makes me hopping mad, as Morris dancing of all kinds is one of my great joys, and has given me enormous pleasure over the years.
As to the black faces, The side called Old Glory have very blackly painted faces, and at the Straw Bear two years ago, made my husband laugh as they took his photo alongside them; they said he certainly didn't need 'blacking up', and HE reckoned he was even blacker than they were! No racism, just lovely friendly people.