First, he said in some parts of the United States and Canada, not every part, so it is irrelevant if in some places it doesn't mean that. He even pointed out that that isn't what he's used to it meaning. Meanwhile, pointing out that a term has racist connotations in some places is not a racist remark. Here is an NPR piece on "thug": The Racially Charged Meaning Behind The Word 'Thug' : NPR
Though written poorly and derogatorily, I thought he was trying to point out that game terms that may evoke such sentiment are risky. I don't think "Flambeau" would do that at all. For an obvious example, what if I wrote a game set in the southern US decades ago and had the N-word throughout it as the word was used in the setting in real life? That would be a bad choice, yes? That is quite so many huge steps beyond "Flambeau." Thankfully he has gone back to delete these statements. He was right to be called out for some of them, just not for racism.
Meanwhile, he's not the only one saying such things:
Lots of people use the N-word to describe each other and when talking with each other. That doesn't mean being from outside that group and using it is acceptable by claiming "requantifying."