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@mooks
I've been reading this thread with interest these past few days. I'm the diversity manager of an east London council (those who have been paying attention will know which one this is). I'm not saying this makes my response any more worthy, but still...
Every time I see or hear something like this, I roll my eyes and sigh. Is the post racist? Legally, yes. Would legal action improve the situation or provide some sort of redress? No. Is it going to change Velorution's attitude? No - in fact it's going to fill them with an even more powerful anti-PC rheotoric. Just as the earlier post showing the picture of the Tory 'It's not racist to impose limits on immigration' poster shows, what we've ended up with is an ignorant, misguided and misinformed person who will use the excuse that they're trying to encourage discussion and debate as a means to peddle their ignorant, misguided and misinformed views - and it makes me sick.
I'd love it if the legislation really made things better, but in the end, coercion won't change Velorution's views - it'll only make them worse. Having read the post, I don't think anything will change them - the only answer (to me) appears to be to hit him in the pocket. If you don't agree with his views, don't shop at Velorution, and recommend that your friends and acquaintances do the same.
In the end you've got to ask "what do I want the outcome to be?" and sadly shopping him to the Equality and Human Rights Commission might give you a bit of immediate satisfaction, but it won't resolve the problem that brought this about in the first place.