Straight up proof that media literacy is wasted on most people. Many scenes in the movie call out the bad taste nature of Kirk Lazarus wearing blackface, often said to his face, but he can't grasp or comprehend it at all because he is a "character actor" and he is "in character". THAT'S THE JOKE.

It's intention is not to make fun of black people, that was never the implication. The joke is, "What is the most extreme thing a dickhead character actor could do if they wanted to win an Oscar?" and Kirk Lazarus as Lincoln Osiris is the punchline. Absurdity pushed to the absolute extreme.