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The entire WW as depicted is thoroughly prejudiced, in its very foundations, based on the attitude toward Muggles even the most enlightened and tolerant wizards hold. Either that, or the attitude of the Potter books and the story they tell is. There are two basic options we have at the end of the story as JKR gave it to us, given that Wizarding secrecy, which relies on at the very least on the repeated mental manipulation of Muggles without their consent, has been maintained.
1) Muggles as a whole (either down to every individual or with so few exceptions as to make them negligible) really are in the Potterverse a threat to wizards and would do everything in their power to destroy them. Muggles would then be, as a group, decidedly inferior to wizards at least morally (some of whom are capable of advocating for tolerance of Muggles and their right to not be tortured or killed unnecessarily). In which case the HP story is prejudiced (within a POV from *our* world) in that it advocates that human beings of one type really are inferior as a class to human beings of another type.
2) Muggles really are wizards equals in the Potterverse, they are equally capable of acting morally and recognizing shared humanity and if given the chance a significant number of them might be in favor of learning to live with wizards rather than destroy them. In which case the attitude *of the WW* - that it is all right to do whatever necessary to Muggles, because they are a threat and so inferior - is prejudiced and wrong even *within* the Potterverse. And the heroes who uphold this model are wrong as well.
1) Muggles as a whole (either down to every individual or with so few exceptions as to make them negligible) really are in the Potterverse a threat to wizards and would do everything in their power to destroy them. Muggles would then be, as a group, decidedly inferior to wizards at least morally (some of whom are capable of advocating for tolerance of Muggles and their right to not be tortured or killed unnecessarily). In which case the HP story is prejudiced (within a POV from *our* world) in that it advocates that human beings of one type really are inferior as a class to human beings of another type.
2) Muggles really are wizards equals in the Potterverse, they are equally capable of acting morally and recognizing shared humanity and if given the chance a significant number of them might be in favor of learning to live with wizards rather than destroy them. In which case the attitude *of the WW* - that it is all right to do whatever necessary to Muggles, because they are a threat and so inferior - is prejudiced and wrong even *within* the Potterverse. And the heroes who uphold this model are wrong as well.