I believe in one of the previous threads on this topic someone from the Iron Men pointed out that their patch often takes them into the more ethnically diverse areas of the West Midlands and that they very seldom meet with any objections.

I came across this guidance for amateur dramatics from the National Operatic and Dramatic Association which deals with the far more sensitive topic of white actors blacking up to actually depict black people. It makes the very sensible point that this is offensive if is to perpetuate racial stereotypes, but the mere depiction of black people by white actors should not be objectionable (although efforts should be made to cast appropriately where possible). This seems to me to be the correct stance to take - there can be no suggestion that morris dancers are perpetuating racial stereotypes (except perhaps English ones). The supposed similarities of costume are far too tenuous, otherwise using different colour facepaint or none at all would make no difference.