Bizarre; what are you saying that Camus's 'L'etranger' was racist? Grow up.
The first Cure album was sublime. I interviewed Smith over the phone during this period (when I was doing a 'what's on' magazine in Brighton) and he seemed like a really nice geezer. The Forest (the 2nd album?) was equally sublime; but only the title track; which if I remember went on for the whole side of the record (vinyl, man), or maybe I had a 12" version. Whatever, it was fucking cool; and I also saw them live a few times around this period.
Nobody's mentioned he also started playing with Siouxie and the Banshees as well, after she inexplicably fired the guitarist and drummer off their first album. Clearly this affected him, as he then started sacking members of The Cure, and basically turning into a full time lush; at which point I lost interest in him. Although I did have a Cure album, which had 'Hanging Garden' on it which was so self flaggelating (?) that it was brilliant ("I'm always 'wrong'). A great talent gone to s(p)eed.
I don't think you can take anything he said during this period (most of his adult life) very seriously; but having lived through this period I can assure you that a) The Cure were a force to be reckoned with b) nobody ever got them mixed up with New Order - or vice Versa. Probably worth remembering that people like Public Image, U2, and Simple Minds were also there or thereabouts (and playing equally smallscale gigs) at this point. To me New Order are the only ones to have come through with any musical or ideological integrity (as much as I love John Lydon) - I can't listen to any of the others any more.