I agree that "the punchline has to subvert the set-up." "Or it would be a one-liner" isn't relevant and while it is arguable I have my limits.
This next line though, "The Indian guy is taking the piss out of the white guy," is a matter of interpretation. If it were a contemporary comedian, and particularly if it was "an Indian guy" telling it, I'd agree that your somewhat "woke" (half-a-shot of espresso) interpretation is apparent, but as it is with a white man telling the joke to a white audience I think it's more likely that the underlying idea that subverts the set-up is that Indians are also racist against themselves and would prefer to have white neighbors.
It's then seen as a message that if you happen to be bothered by Indians you're not a bad person. They also bother each other!
Either interpretation is possible. Yours is not supported by anything that is actually said and given the context I find it very unlikely, but I'm sure you'll explain how it's actually the only valid interpretation with the same conviction you show when explaining Morrissey's various statements.
Indians are racist against themselves wouldn't subvert the set-up.
It's not woke, it's knowing how jokes are structured.