Good animation, but misguided
I wouldn't have any problems with a gay, racist villain if it weren't for the fact that you were doing it for gags and laughter--and I guess to homophobes that would be funny. But for me (and yes, I guess I unfortunately have to state that I'm heterosexual since everyone assumes you're a "fag" if you stick up for homosexuals) I do have a problem with it. You're against racism but you're making fun of people based on their sexuality--don't you see the hypocrisy? I don't want to rag on you too much because you did a good job on the animation and characterization but you just seem go into the wrong direction with thinking that making someone into a "fag" is automatic laughs. Now if you had made the character gay and he couldn't recognize that his racism was equal to being homophobic then there might be some irony. Hopefully you aren't really prejudiced against gays and this was just an honest mistake. There's definite potential to do better.