There is a backstory to this.
Apparently KFC ran this ad as part of a series with a certain Australian team playing certain other teams (long standing rivalries I guess). The team that they played in this ad was predominantly black.
Also, the stereotype of fried chicken and black people does not exist in Australia. Keep in mind also that the deep rooted prejudice and bigotry that we are all familiar with is different in the US than it is in other parts of the world.
Ergo, the ad's target audience wouldn't have thought anything of this ad. Yet... as Americans... we DEMAND that the ad be pulled. You know... because if we feel offended, then an ad that runs halfway around the world should definitely be pulled.
I think a good point was made towards the end of the article... this is nothing more than Americans failing to understand one bit of the world beyond it's borders.