I think part of the problem here is that people resent other's telling them how to talk - within reason.
I mean first of all, i think everyone would probably universally agree, context or no context, that the word "November Indigo Golf Golf Echo Romeo" is a word that nobody should use. It's just a word that ignites a flashpan with alot of ummm.. history behind it.
To agree to refrain from using a word like that is reasonable. Besides, nobody wants to be confiused with a racist biggot that would use that word.
But i think there's a line that people don't like being pushed over. For instance this is a WW2 submarine sim. If you've ready any books from the time period. I dunno, "run silent run deep", or many of Edward Beach's books on the subject, you'll find the word "jap" mentioned alot. Given the subject and it's context, its common language. Telling a person they can't use that word, within proper context, - now your just telling people how to talk and it's at a level where it might be considered unresonable to a minor degree of being repressed - or at the least it feels that way.
I personally resent people telling me how to talk if its beyond what's reasonable. I also think this is something built into the American psychi to a certain degree. "It's a free country, freedom of speech!, I'll say what i damn well want!" is the immediate kneejerk response. However, i don't think anyone would use that argument in an airport with bomb jokes. So there's obviously a line.
I'd also resent someone telling me i can't use "jap" as shorthand in the context of SH4 because of this stuipd **** called "aZy3n PrYd3" or whatever they like to call it. I see that ****, i'll go out of my way to use Jap, and every other slang that exists in the WW2 dictionary, just to piss them off, but ill stop there cause that touchs on a subject that belongs on the general forum. Im obviously getting worked up now. eesssh

(long story short i hate people who hyphenate themselves, its pretentious BS)