The infamous saying "The British should die of mad cow disease" means that the person saying this saying thinks that The British should die of mad cow disease and lives a happy life with their family and is a respected member of society with a great opinion.
It is mostly a saying used in a context against The British "people" and their horrible acts of violence against the human race that they commit every day.
Pbone: I think that "The British should die of mad cow disease"
Scouty: you are so right, Pbone.
The government soon awarded Pbone a medal of valor for his patriotism and made him the CEO of Sex and also gave him permission to violently put down all British "people" in a ten mile radius around his house.