I wouldn't say it's dead but its under attack and it varies from country to country. In some countries you can be racist to certain groups but not others. Sometimes it's not ok to discriminate against religion but perfectly fine to discriminate against homosexuals etc.
The freedom of speech is under threat from radical Islam, political correctness and the LGBT lobby. In England (which happens to be the political correctness capital of the world), the situation can be summarized as follows:
1. It is OK to discriminate against other religions such as Christianity and Hinduism, but it is not OK to do so against Judaism and Islam.
2. It is OK to discriminate against heterosexuals, but it is not OK to discriminate against homosexuals.
3. It is OK to discriminate against whites, but it is not OK to discriminate against non-whites.
4. It is OK to discriminate against males, but it is not OK to discriminate against females.
You pretty much described postmodernist West, Bryant. Rest of the world works quite differently. Good for them, as both demography and economy suggests, that West is headed for terminal decline and along with it, also its "universal values". Universal values stop being universal, when their upholders isnt able to enforce them anymore. Cant say, I am terribly griefed about that. Last fifty years brought Europe only stagnation, atomization and ageing.