Comment: Teepee, peace pipe, tomahawk, warpaint, flute music, screeching hawk, medicine man, casino, substance abuse, funny Indian names...these commercials are practically a catalog of Native stereotypes. They're essentially a 21st-century minstrel show about Indians. If Mad TV mocked any other ethnic group this way, there'd be protests in the streets.
So, yes...if you consider racism offensive, you may find this video offensive.
For more on the subject, see The Basic Indian Stereotypes.