The dynamic between Petey and Dewey that grows from a mutual dislike to a sort of fascination, on Dewey's part, is something that comes out of their respective relationships to "the system," here being the white-owned business setting in which they both operate. Dewey has from the outset been a man who recognizes the limitations of being a white-owned black radio station but realizes that his personal success in this situation depends on him being able to comply with his bosses' agenda. Petey, on the other hand, comes from a world with few rules and a natural resistance to authority. Because of this, he is able to step over what Dewey considers cardinal rules, be himself, and talk about issues in a provocative way that resonates with listeners. In doing so, what had once been iron laws of the workplace and media industry in Dewey's eyes have been shown to be breakable, or at least flexible. Seeing this, Dewey, who had always played the assimilationist role, begins to see that success and also an assertion of a real and black-centric voice is possible by being more willing to break rules, challenging authority, and ultimately "keep it real," as Petey does.
I don't believe Petey, as portrayed in this film, was a racist anymore than the next man. I think much of his appeal was his willingness to speak out, to provide an alternative look at what was going on in the country, which was ultimately in conflict with the "status quo" point of view. The American people, particularly during this time, are never lock-step in their opinions and views on social issues or the state of the nation's affairs. Particularly his black audience, Petey provided an outlet for frustrations and an alternative point of view that wasn't being put out there by white-controlled media. Petey surely made his share of controversial or inflammatory statements during his tenure, which probably rankled white station owners, but his message definitely struck a chord with his listening public. I think the brusqueness with which Petey carries himself and is simply a result of being "down and out" for much of his life, imprisoned, or whatever. Coming from a perspective of having "seen it all," Petey's natural inhibition towards offending people or his skill at holding his tounge simply weren't a factor. The idea of Petey as a racist doesn't really go over well, because despite his recalcitrant nature, his views and greivances certainly are formed from real social issues, inequalities, and from a lifetime of seeing the underside of American life.