Here's a newsflash:
The big issue of the Civil War wasn't about racism and slavery. Slavery wasn't that common, actually. And those who did own slaves were more likely to treat them with respect than to be harsh and abusive. Even back then, sensationalism won out. The reason the South seceded was because of state rights versus federal rights. Oddly enough, the southern states felt oppressed and decided they'd rather govern themselves. Slavery was thrown into the mix to get people to support the war.
So no, that flag is NOT a symbol for racism and never has been. The people who equate it as such are either those looking to strike fear into minority groups and are few and far between or are the people within minority groups who will do anything to raise a little Cain to get a little attention and do the whole "woe is me" bit.