I agree with you (although I think one should be upset about this, and you seemed to imply that you disagree with the "systemic racism people").

This would directly penalize endangered languages and dialects, which is a tragic loss for linguistic diversity. I think a lot of people hoped the WWW would connect these small and dwindling communities, and even help revitalize them, but policies like this sound actively harmful.

If we're looking at it through the lens of systemic racism, it seems pretty straightforward as well – anyone who speaks a non-standard variant or dialect of their language will have less power to share their thoughts and ideas. They will also see less other people doing so, creating a feedback-loop discouraging the use of non-standard language.