Rabbi Yosef was instrumental in the creation of the state of Israel and in what is today one of the largest political parties in the country. He was one of the most well known leaders from both a political and religious standpoint.
The quote you are attributing to him was made when he was 90 years old, so maybe he wasn't at his best from a mental standpoint (that's the give him the benefit of the doubt narrative).
But, after reading about him, I will say there is enough there to agree that he felt that Christians and Muslims were beneath the level of Jews. But, if you read further, you will see that he also stated that the 6 million Jews, who died in the Holocaust were destined to perish due to sins of Jews in prior years. He also criticized Israeli soldiers for not "keeping the Sabbath holy" by ceasing all other activities and only studying Torah during the 24 hours of the Sabbath. He said that this was the reason that soldiers died during war.
To sum it all up, he was well respected within the State of Israel, but I'm sure that a lot of people thought he was eccentric and a bit "out there". He was definitely very opinionated. Basically, he criticized and looked down all but the most orthodox Jews, who dedicate themselves entirely to the Torah and to god. He did many great things for his country. I'm sure there were a lot of people, who attended his funeral, that thought he deserved to be honored even though they did not agree with everything he said during his life.
I don't know if it is even close to a good comparison, but this might be like if one of our founding fathers said a bunch of controversial things, yet had a huge turnout for his funeral despite all of the crazy things he said and ridiculous beliefs that he held.
But, go ahead and take one of his quotes, plus the attendance numbers for his funeral, and continue to use that to drive your antisemitic narrative. Maybe some, who read this board, will buy in.
