I think they were kind of screwed with Danny, even if the show had been made by more talented people. Danny being a rich, but basically normal besides that, guy who becomes Iron Fist is important to making the character who he is, so making him a random Asian guy might hurt that a bit, because he's supposed to be kind of an outsider and be different from other Marvel martial arts heroes. That said, without adjusting other stuff his character is just taking parts of other cultures and doing white savior-ish stuff.
But, being a white guy who is good at martial arts isn't an inherently racist thing, either. I think making Kun Lun a more mystical place inhabited by people from all over the world, like Doctor Strange's training place, could help the Iron Fist concept a lot. Also, introducing the other Immortal Weapons, and having them be various ethnicities, would also make Danny being white (assuming they wanted to keep that, although Iron Fist could work with different types of people as long as he's different enough from characters like Shang Chi) make more sense.
But the netflix show barely did anything with the mythology from the bits I saw, since all the Netflix shows hated anything that wasn't "grounded realism". They would do "fantastic" stuff like super powers, but only the bare minimum that they had to (they couldn't have done Jessica Jones without Purple Man's powers, for example). I don't think they even show Danny punching the dragon to get his fist, so using the mythical elements to get away (as much as they could) from the problematic elements wasn't really possible under the (seeming self imposed) restrictions to how "comicbook/fantasy" the show was allowed to go.
Basically I think that the main MCU could make Danny Rand work even keeping him as a white guy if they wanted to. But,at this point there isn't a lot of reason to bring that character back anyway, outside of the fact that he's really the only other Martial Arts focused Marvel hero besides Shang Chi (DC has a lot more variety when it comes to martial arts heroes/villains).