simonj,
John Lydon has had a long-standing admiration of dub music, he made one of the first rap songs (with Afrika Bambaata, godfather of hip-hop) and had one of his biggest hits with an anti-apartheid song (Rise). He has strongly denied the allegation made against him, calling it "atrocious" and "hurtful" and, responding directly to the suggestion that he had behaved in a racist manner, said that he had spent his entire life seeking to prove the opposite.
Should you complain about him fronting a butter commercial? Yes, but only on the grounds that it is the most enormous sell-out. The article you quote doesn't even attribute an allegation of racist language against him, rather against his party.
Roz: "now clearly a racist": what a fantastically smug and lazy judgment to make - shame on you.
As for you baggydave I see that Lydon has been complaining that his recent gigs are being attended by "polite schoolteachers". Presumably Clash fans with nowhere else to go, the Clash being the single most overrated darlings of the middle-classes in popular music history. Just my opinion mind.