Kyle is anything but friendly toward death eaters, but yes old habits die hard. He makes a good show of not being racist though. For him muggles are people too even if he doesn't understand them. And when it comes to muggle born and mixed he's got no issues. For him the biggest thing is proving yourself battle capable and ready to protect those that aren't. If you aren't battle capable he considers you a victim waiting to happen, which at this point is basically his opinion of non magic users, and if someone is a non magic user but can prove capable of getting around it then he's cool with them. Ie the couple of weak magic but hand to hand combat people he's fine with. 

Does that make sense?