The Tequila Gundam loses so fast we have no idea what its capabilities are.
Does its pilot at least go "ay ay ay!", "caramba!" or some other sort of generic Mexican one-liner upon his defeat? That would probably redeem him a tiny bit in my eyes.
The way culture and media represented cultural, racial and sexual differences a couple generations ago is one of the main reasons I can't really agree with people who think things were better in the past. I mean, there's lots of new things that are wrong with society nowaays, but I believe the way minorities (or just foreigners) got caricaturized and demonized back then was quite ruthless.