I'm against censorship, but I'm also pro-"putting things in their place". When Rent became open to the high school community and all the hoopla commenced about the appropriateness of a show that dealt with those issues with minors performing, I understood the furor. But, I think taking out the language and the sexual overtones of a piece like that dulls the impact of what the writer was pushing towards. It becomes a question of is the message of the work important enough to
adapt it so that it's appropriate for the audience or is it better to allow it to exist as intended and to function as it was envisioned?
In this case I think it comes down to a question of your intended audience and your cast and production team. You've already stated that you're uncomfortable working on a show with a blackface character. That's not a statement of right or wrong, but that's how you feel and that's valid. Is it worth compromising your values or the author's intentions (and potentially copyright law) to put the show on? Is there another show that would be better suited to your theatrical environment?
This show premiered on the West End and I'm guessing that it wasn't as scandalous there. However, there are many regions in the US where race is a very real and palpable issue in communities. If that's the case here, would it be possible to use a show like this as a means of creating a dialogue within your community? Perhaps a Q&A with the actors following or a statement from the director at the beginning?
I can't help but think of Blazing Saddles and the outright apparent racism that was used as a tool to highlight the absolute ignorance of the white antagonists. I read somewhere that during filiming Slim Pickins or Burton Gilliam stopped and was hesitant to read lines with Cleavon Little, because they were afraid of offending. If I recall, Cleavon told him that it was just words and that the movie wouldn't work the same without the impact of the words. It had to be real for the audience to get that the joke was making fun of the ignorance of racism. My personal belief is that nothing should be so sacred that it can't be made fun of and that we are not free from hate as long as certain concepts are allowed to remain "off-limits". I think shying away from what has happened and continues to happen is a sweeping-under-the-rug sort of response. It doesn't make anything better or magically go away. It just hides the dirt. It doesn't fix anything.
But I also understand that many people are not ready to embrace such a concept and the truth is they have every right to want freedom from such things. I respect that wholly. Hence the reason for a time and place for all things.
At the end of the day, it's about protecting your integrity and not offending your audience.