It's terrible and I have felt that, for better or worse, Suarez has been poorly advised from the start. All he needed was a statement to the effect of "I apologise for the incident that took place, I didn't understand that what I said caused offence and I'll gladly take whatever punishment is deemed necessary".
Would have got a nothing ban, two games max. and nobody would accuse him of not just racism but being a racist. Whole thing would have been forgotten within a week.