See my post above. I think it is safely across a clear bright line.
Legally, you are mostly correct, although there is the question of degrading the value of the original AP photo. However, to quote the blueprint that is inspiring the far left, "some animals are more equal than others". The fact that GZ is clearly engaged in parody is not as significant if it was some other White Hispanic. He needs to change his name to something innocuous . . . perhaps Carlos Danger.