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Genetically, he is more European, and thus "whiter". Honestly, I don't think this should even be a discussion. But for obvious reasons, he isn't at the same time. I don't think anybody here is disagreeing with your main point though. Take it easy, Hadouken.
He's saying that the mulatto's direct European ancestry is isn't the only thing we should look at but the overall finished product, so to speak. And he does make a solid point. He may be "whiter" than us, but he really isn't actually whiter than us if you think about it.