Joe definitely lies about shit and he does give Ricans too much credit for the creation of HipHop.
They do refer to black people as Morena. I mean Pun did that in the Don't Wanna Be a Player song. As far as I know, that's not a slur.
I've never hear Joe use the N word with the hard -er, but I don't like him using it either way. That said, his whole justification for why he can use the word is because he's Ricans and Ricans have African heritage. It's kinda hard to claim that him using the N-word makes him racist when he uses it because he thinks he's got some claim to Blackness. I think his claim is bullshit though because as you said, he's clearly a white Rican.
I don't know anything about the colony he's from, but I haven't heard anything about him personally mistreating black people.
I don't know. I wouldn't call Joe racist, but I can't fault you for saying he is. He does some questionable shit and his stance on certain shit is problematic.