No, it's not hypocritical, because it's not just a moral issue. It's also an issue of practicality.
But let's look at it a different way. Take the race element out of it. Imagine Kevin James was upset that the Academy didn't nominate "Paul Blart: Mall Cop" and he was not going to attend the show because the Academy doesn't expect comedy. Then imagine some other comedian come out and say " Yeah, he's right. The Oscars doesn't respect comedy." If those things happened, would it make sense that Kevin James entirely stopped working in Hollywood, along with any other comedian who felt the Oscars didn't respect comedy? Is it a logical follow-up that because Kevin James thinks the academy doesn't respect comedy, that any comedy winner from the last 60 years return their award? One set of things has nothing to do with the other. That's what I'm trying to get you to understand.
I see what you are saying, but again, that's what you are ignoring is the practicality of it.
See, you're talking about people boycotting the Academy awards who will not be affected what so ever by them not showing up.
Both Smith and his wife along with Spike Lee could do absolutely nothing for the rest of their lives and their living situation would not change at all. If they get no parts, get absolutely nothing for the rest of their lives in regards to Hollywood, they will be fine.
They are trying to get others to boycott and those people NEED jobs.
That's what "Aunt Viv's" video was talking about.
To answer your questions though... The answer is yes.
Yes, he should stop working if he feels so slighted. Yes the people who agree should return their Oscars. They have everything to do with each other because Hollywood is connected like that.
You are not understanding my point and as you continue to not understand, I see no point in continuing the conversation.
I will not respond to you again on this matter.