i think they over reacted. i can understand why; considering past circumstances, but i think they could have handled the whole thing differently.
I think they had to do what they did. Given the context of the Shilpa Shetty incident, if they had not reacted so strongly, the future of the programme would have been in jeopardy. That said I don't think this was a racist incident, though it would have caused offence given that most people, including the person she was talking to, would not have known the reference....