Not in Australia that I am aware of. People seem to be imposing their own cultural standards on to this incident in order to decry it as racist. This is unfair - and again I state that what it was portraying has been misrepresented.
Let me give you an example: There was an Aussie tourism ad shot last year IIRC, where at the end, the girl says "where the bloody hell are you?" This was intended to be aired in Britain to bring in tourists. Of course, the makers of the commercia were not aware that in Britain, "bloody" (in that context) is a bit of a rude word - whereas in Australia it is not considered to be so bad, which is why it was put into a commercial.
That was a faux pas on the commercial makers part, but what the British think of the word is only relevant here, because they were the target audience. It would be wrong to say "saying 'bloody' in a sentence like that is wrong in Australia because it is offensive in Britain."
The fact of the matter is that this is a low-class TV show (I don't watch it) and it was meant for a one-night airing to Australia only. The very fact that it passed checks and got onto TV in the first place should tell you that it is not considered an offensive thing in Australia to paint one's face black - and again, that was not the focus of the act.
in their earlier attempt, before his death, that was shown, 'MJ' was black - so what was the 'joke' that time?
I don't understand this.