I actually understand and agree more with the complaints over Pepe than I do about Speedy. Even when I was a kid, I found him overbearing and kind of creepy.
With Pepe, the complaint was that a lot of people end up kind of like him: abusive while believing that what they’re doing is okay. He isn’t really a bad guy, when you get down to it, but he does bad things, and (the argument goes) this sends a message. I mean, Schwarzenegger got flak when he was running for governor about some very ribald “jokes” he pulled like twenty years ago that clearly were harassment. I’m sure nobody ever told him to his face that it bothered them. If you believe his apologies/explanations, it was only much later he realized people were in fact offended, but too afraid to say to – he had thought they thought it was funny.
Speedy, on the other hand, is a much more nuanced character. There are a lot of overtly stereotyped and (frankly) kind of racist jokes all over the cartoons, but there were also a lot of things that counteracted this. Speedy himself not being a white man come to protect them was a big one. If I recall correctly this is one of the things the hispanic groups said – they LIKED that Speedy was an openly mexican character at a time when shows like Kung Fu had a white lead pretending to be Asian when Bruce Lee wanted to do the part. Then there’s the fact that the most commonly occuring villain (I think one or two featured Taz as the bad guy) was Sylvester, who is obviously ethnically American, doing nothing but trying to kill them all and devour them alive.
So I mean, I can easily see the complaints about Pepe. But compared to some things out there, it’s pretty mild. There’s Charlie Chan, there’s Creepy Disney Subtext (there’s more, like this bit about Pinnochio), there’s F-Troop. Then there are people like H. P. Lovecraft. In 1920, being racist (like he was) was not terribly uncommon, however, it means his body of work contains things like this and this – but also this. And Lovecraft created essentially modern horror: you basically cannot see horror done today that hasn’t been influenced by Lovecraft, or by someone who was influenced by Lovecraft.
The older works are what they are. They were a product of their time, and even relatively progressive people can produce things that seem quaint or offensive later on. It is better to acknowledge this, and at the same time, acknowledge the positive qualities of these works – than to try to whitewash the problems away (pun not intended). Whitewashing over an issue doesn’t make the issue go away, it just makes it easier to ignore.