Yes, it is PC gone mad. I too went to a top public school, we wore boaters and administered thrashings and smoked behind the cricket pavilion, and we were trained to pooh-pooh foreigners and the lower classes.
Note that the subject of the 3-year old remark neither complained then nor has complained now. Good job too, I'd lock him in the Tower if he did (or she obviously, could be a woman - probably a lesbian)
The woolly idealistic Lefties will eventually destroy all this country's traditions, such as its Royal Family. Once a tradition has been destroyed, you can never get it back. Who knows what to expect? (except loads of minarets)