yeah, i mean, even a lot of the Cthulu universe stuff features "brave upper class german officers" in ww1. Pretty gross, but at the same time, there's a lot of good writing. It's a bit like Wagner - you have to take his operatic genius with the fact that he was a vehement antisemitic.
I think Lovecraft's racism, when it goes beyond what was just in the air in his day, is different from Wagner's antisemitism in that it's cosmic horror writ small and so very entwined with what he's trying to express. Not only is the universe not for humans, but humanity isn't for humans like Lovecraft. It's the horror at realizing nothing about you matters, at least not in any absolute way. I think that's why we see more Lovecraft-inspired work more sympathetic to his cultists than his heroes as time goes on; they at least embrace their insignificance.