I've seen that logic elsewhere - that (in the case of Stuart Waiton's writing ) racism was reportedly on the increase but what is, in fact, increasing is people's keenness to characterize normal behaviour as racist.
Eg shouting racial slurs at a footballer.
I work with people of religious and ethnic minorities and people I work with will tell me they perceive an increase in people who seem to feel comfortable with making racist or intolerant comments towards them.
The people I work with are generally not keen at all to report this to the police.
So if anything there's more harassment happening than is currently reported.
However this article conflates hate incidents (or perceived hate incidents) like the 'you can't be in my porn because you have an appendage usually associated with men' incident mentioned, with actual hate crime.
I'm not sure if the law conflates these in England and Wales. Apologies if it does
A hate crime is behaviour amounting to criminal conduct which has a hate element. Eg assault or battery or vandalism where the motive is clearly unpleasant sentiment against a group
I think it's important to be able to record that but I think you can do that without policing thought or speech.