Free speech is an incredibly sensitive topic, and too many people misunderstand what is meant by "free speech".
Free Speech is the right to state your views in a civil and reasonable manner, regardless of how repulsive or outlandish they may be, and so long as no personal threats are stated.
What this woman was spewing is not, and should not be, classified as free speech. She fails to show any degree of rationality or civility, and her drivel consists of nothing but personal attacks, extremely offensive remarks, and irrational statements.
That said, I do not believe that hate speech is grounds for arrest. It is a good reason to monitor the person and prevent them from harming others, but, though hate speech can and should be censored (though "censorship" has become a dirty word), I do not believe it should be considered criminal.
Therefore, though I believe this woman deserves a swift kick to the teeth, I believe that she should be arrested for disturbing the peace, which she most certainly was doing, rather than her speech.
This woman is simply a bigot, a shallow-minded idiot. If her stupidity was a criminal offense, half of the global population would be behind bars. To play the Devil's Advocate, we have no knowledge of her life outside of this short clip. Perhaps she is simply a bitter white supremacist, or perhaps she was having a horrific day, made worse by whatever the hell was affecting her mind. Honestly, I wonder what would happen if everybody was caught at their worst, and put on the Internet.
She deserves punitive action, but something like this should not merit any serious punishment, not for such a small first offense.