There's a distinct difference between wearing makeup to look black, and blackface. This is blackface. The jetblack, shoe-polish applied to the face for the purpose of creating a negro caricature was the main component of blackface, and this vid has that. Apart from the lack of red lips that was common during blackface performances at the turn of last century, it's the same thing. The only question was the intent, and they said racism wasn't the intent, but people do and say racist things all the time without owing up to it, so who knows.
If I was one of their black friends or associates, they would be suspect forever.