At the same time, my understanding of racism's not being what it used to be focuses more on the ways that racism has become so differentiated on the one hand and increasingly interpersonally invisible on the other. While there are racist assumptions and actions embedded in the lives and interactions of most of my students, the vast majority of them engage in infinitely softer interpersonal racism than their parents and grandparents. What they struggle most to understand, however, is that as interpersonal racism has become softer the uneven and disproportionate racial consequences of neoliberal social policy has become harder and harder.
Reed is right, it is a much clearer project to fight lynching, restrictive covenants, Jim Crow, etc. but that doesn't mean in the slightest that what is or needs to be fought is attitudes rather than legislated policy or bureaucratically ossified practices (black farmers still get shafted relative to white ones by the USDA even though there's no formal element to that shafting [Shaft reference intentional if after the fact].) Of course, in this less obvious realm, the discrete character of racial relative to class oppression is harder to see as the two are more integrated while simultaneously being more invisible but totally NOT about the racial attitudes of individuals.
I'd expect we're pretty close to agreement on this… at least I hope so.