They specifically state that you must be born to Mexican parents. If you are born to white American parents but are a Mexican citizen you need not apply.
Also, even if you are born to Mexican parents and hold citizenship, you cannot apply if you choose to play for another country's national team. Herculez Gomez, who was born in the US to Mexican parents but rose up through Cruz Azul's youth system and played for Puebla and held Mexican citizenship was not allowed to play for Chivas because he played for the US national team.
Chivas USA, who had the same owner, was sued for discrimination because he tried to only hire and sign ethic Mexicans as coaches and academy players. He was trying to recreate Chivas' "Mexican only" model here. He was forced to sell the team not long after.
Also, I don't mind Spanish clubs as much. I have yet to go to Spain and hear about how racist and horrible towards immigrants the United States is and how we need to change. I haven't experienced the same kind of hypocrisy there. If that were the case, yes, I would mind.