The real lyrics are actually anti-racist, challenging the listener's conscience concerning the role he played in supporting or opposing the civil rights movement (everyone did one or the other; hence 'we all did what we could do'). They also distance the singer from Nixon by denying 'guilt by association.' The misheard lyrics would endorse racist behavior, given that they would condone then-segregationist George Wallace and those in Birmingham who 'love' him as mentioned in previous lines. Big difference.