Don't know what happened there, post below.
Yes, this is largely true. But the media are often happy to ignore that, so it does have a little bit of significance.
Not really, 3% is really low, and Henley is hardly a working class area. Just like there are 2-3% of frothing anti-euro types who will vote UKIP even in a general election, there are going to be 2-3% who will vote for a racist party- especially one thats a little less open about it.
Your analysis is of course largely correct in those areas they are winning council seats, but that doesn't mean its true for a desultory performance like this. It just means they have reached a level of awareness, like the BNP and the greens, to attract their very low natural hardcore vote base. Not a good thing by any means, but if they get anywhere its not because of that.