The following comment may be too common-sense for a great many on here to comprehend but what if Morrissey is not a racist, not a nationalist, not a supporter of right wing politics but just anti establishment and pro-people?
Morrissey said that the Brexit result was magnificent - not that Brexit is magnificent. And the result was magnificent. It put the MSM on the defensive, gave most British politicians the shits, and defied the constant threats of Dodgy Dave Cameron, who lost his job. Morrissey hates establishment, hates the Tories, and has often been quoted saying the people are ignored by both.
I think to go along with what you say, it is the case that "liberalism" has been turned on its head in the past few years. What is considered to be liberal now by a lot of people is not liberal at all, such as support for the European Union or the suppression of freedom of expression. As a result, many traditional liberals who no longer fit on the liberal-progressive side of things have turned toward the conservative-libertarian side of things because, interestingly, conservatism now seems actually to be a liberal discipline in the true sense of the word, at least partially.
It is difficult to discuss left versus right as a binary because of course it is more complicated than that. This is likely why people like Morrissey seem like radical progressives on some positions and staunch conservatives on others. Progressive liberalism is clearly broken, and conservative liberalism is taking its place for many level-headed, centrist-types who would have called themselves liberals five or ten years ago.
Today, however, if you are even a centrist, you risk being called far-right, alt-right, racist, sexist, Nazi, transphobic, or any other such meaningless name simply for daring to use your own mind and disagree with one of the postulates of the new left. Certainly, the result is bringing about more extremism and fragmentation on both sides and in all areas in between. The consequence is that more and more people are going to be reviled by the modern left over time if things continue in the way that they are going.
I think in regard to the right, people have certainly made efforts to denounce the extremists. No one likes the KKK and those types. The danger is an even bigger and well-funded and still widely undenounced radical element on the left that, if left unchecked, could bring about some increasingly ugly consequences. The hammer-and-sickle-banner-wielders are no better than the Swastika-banner-wielders, and yet, problematically, people still make excuses for them.
I think the whole superior element of the left has completely begun to unravel as well, especially with all the Hollywood sex and pedophile scandals coming out. Finally, I think virtue-signalling is losing its appeal, and people are starting to realize that they do not have to care about how some fringe radicals decide to quantify them (racist, sexist, etc.) because it has all become so unreasonable and openly hypocritical.
At the base of everything, more than left and right, is liberal-conservative anti-establishmentism versus progressive-radical establishmentism. Incidentally, strangely, the radical elements of the left are funded and supported in many cases by the establishment: the deep-state, pro-European Union-types, making them pawns, really.
In short, we are in the middle of a paradigm shift and as a result, the political landscape is quite confusing. More and more people who identify as leftists, though, one imagines, are beginning to see that the people who have hijacked liberalism do not represent them and their ideals, and things are changing as a result. Morrissey is one of those people who dares to challenge the pseudo-liberals, and he is receiving predictable backlash. Combined with his tendency to be intentionally controversial, it is not surprising to see some people react hyperbolically. However, Morrissey is clearly evaluating things differently for himself and reconsidering truths that he probably took for granted prior to recent events. It is challenging to contend with such changes, but contending with a great deal of change and reconsidering our understanding of the world around us are things that many of us are doing these days.
It remains to be seen if the radical elements of the left will actually allow the sane elements of the left to rebuild things, or whether they will push the true liberals and centrists over to new conservatism. Certainly, the process that is occurring is very interesting and quite difficult for many people to grasp or accept.