Weeell I mean we use abbreviation for the really bad ones. BAföG being my usual example. And I work with international students so with some I see how they learn German from the beginning. My favourite moments are when they discover words like Arbeitsunfähigkeitsbesscheinigung (wich we abbreviate with AU or just Krankenschein), Geschwindigkeitsbegrenzung (or just Tempolimit) or the aforementioned Berufsausbildungsförderungsgeld (or just BAföG). I feel like there are quite a few really long words in everyday life. You just have to look out for them.
The comments the guy makes sound more like “yes having black skin is bad, but there is nothing he can change about it, so don’t bully him.” And when he dips the kids in ink he say “look at you. Your skin is even darker than his now!”.