I agree that policing language is stupid, but something you don't seem to be considering is that homosexuals, blacks, and other minorities are not ubiquitous monoliths. One black person may find the appropriation and re-purposing to be empowering and part of how their culture takes back the power that word has while another may simultaneously feel that the best approach is to deal with language like it's Freddy Kruger and that the only way to truly eliminate the subjugation the word represents is by erasing the very memory of it from our lexicon. The latter type doesn't want anyone using it, including the former, but that's not going to stop the former.
Many members of the LBGT community equate the use of faggot this way with how the gay community came to "own" the word queer, which used to be used derogatorily, and transformed it into something neutral. This was more or less Chiron's point in his meltdown a while back. As a homsexual, he felt that he was at the very least entitled to use faggot to describe himself. Others feel that the word has come to represent nothing more than a way to ostracize and alienate homosexuals.
Some feminists are attempting to do the same thing to the word "slut" by transforming it from something negative into about having the equal freedom to embrace their sexuality as men.
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