Racism by definition is the belief that your race is superior to others. For example: Nazi Germany.
IMHO, the "R" word is vastly overused and is used for anything that black people don't like to make the Caucasian race feel guilty.
I'm not here to bust on Butz, but the joke is racist. He lumped all blacks together and said that their every desire is carnal in implied contrast to others, presumably whites, who are also interested in higher things.
Well, the "joke" loses its impact when you try to clean it up.
Here is a link to the exact quote
It is obnoxious.
However, the "I'll tell you what the coloreds want. It's three things: .... " is racist by your definition.
"We non-blacks want civilized things, of course. The black animals, on the other hand, only want three things, namely .... "
I don’t think the comment is necessarily racist as I am a white man and I like all three of those things.
You’re absolutely correct. His comment was stereotyping folks, but there was no racism indicated. The word racism is thrown about so much these days that the meaning is actually changing before our very eyes.