Long-nosed Westerners--FuNnY?

To look western, people can go to a Tokyo department store and purchase stick-on blue eyes and a long nose to wear to parties!  Here is the link to a controversial Japanese advertisement that portrays common stereotypes of Westerners.  Some call it racist.  Some think it is funny.  What do you think??
  http://www.debito.org/Toshibasuipanda.mp4