The quote is very poorly written, but I'm pretty sure he was saying that Obama Care is the "piece of fecal matter".
Yeah, probably. Then again I'm sure these people don't really pride themselves on things like "careful word choice/order" for the sake of unambiguity. It should probably read something like "piece-of-fecal-matter 'policy'" or whatever.
Eh, he probably thinks the people that don't denounce it are "shit" too, although that doesn't necessarily refer to race either. Doesn't make the comment any less rabid/stupid/insane either way. I'd wager you ask them why they hate Obamacare and you'd get nothing but Republican talking points, regardless of whether there's any legitimate merit.