I did a whole series of lectures two years ago on the development of laws relating to prejudice. One of the things we looked at was the use of language and the demonisation of words. It was very interesting to hear what the various people in the workshops had to say. The lectures were written and delivered to members of the Civil Service who were to be part of a committee looking at prejudice against minority groups in particular with a view to advising the legistlature. Some of the opinion was interesting but a lot made me quite angry... although I didn't show it of course, far too professional for that.
The ultimate decision which the group came up with was that although sometimes it is the intent behind the word that is the key issue there are some words that are so bad that they should be banned per se and that people should not be allowed to say certain words whatever the intent behind them was. The key words that were mentioned by the group in this catefgory were nigger, fag, spastic, etc
Interestingly the group thought that positive discrimination was fine, and that it was also fine for people who belonged to the 'wronged' minorities to use the words themselves... ie the Garrison rule in practice in the heart of government.