I would be pretty alarmed at your acquaintance's behaviour.

Yes, many people do in fact show their true colours when significantly under the influence as they are unable to keep themselves in check. The fact that your friend apologises the following morning indicates they are aware what they are saying is unacceptable yet they still allow themselves to behave that way. I gather this is a frequent occurrence which is an indication they have a major problem. It is one thing to get that drunk a few times a year but regularly?

I think you are right to confront them about this and I admire you for the ability to set your limits. You might just have to abandon the relationship though based on what are apparently the fellow's ideas and values.