That's a surprising statement - of course there are people who are racist, and who also like to police other people's language, and who are careful not to use derogatory terms themselves which is obvious because it would kinda blow their cover, wouldn't it, if they did!
Then there are people who exhibit all the signs of being racist - using offensive terms, laughing at racists jokes, but are somehow, despite this, 'good people' because they are colour blind - not literally, I assume.
Then there are the people in the middle of the two extremes.
People who 'would never dream of using a derogatory term themselves' because that's who they are: people who would never dream of using a derogatory term about someone because of their race, or any other aspect of them.
That's not so unusual, you know , there are lots of them about.
And, crucially, these people in the middle who 'would never dream of using a derogatory term themselves' are not 'the most racist people', and they are not 'blind to their own racism.', they are just ordinary people with enough awareness to be respectful of other people.
I know which group I would rather be around, it's the ordinary 'decent' people who don't belong to either of your extremes.