Ed Kennedy had an interesting post up at AfterElton earlier about different media establishment and how they covered the epithets throw around by the tea party protestors this weekend. When talking about what the tea partiers were saying, media rarely used the term "nigger" itself and instead opted for euphemisms like "the n-word," "ni**er," and "racial slurs." When it came to "faggot," it seemed to be slightly more acceptable for media folks to use that word, although there was a lot of "fa**ot" and "anti-gay remark."
Because this incident involved both words, it's interesting to see that a few media sources would use the word "faggot" alongside "Ni**er" or "the 'N' word." Usually we don't get this opportunity to play the mierda veo, mierda quiero game so directly. (If you want to see that, just check out the comments on Ed's post.)
Personally, I don't have a say when it comes to racial slurs, but anti-gay slurs don't bother me all too much if they're just reporting what happened. I've been called "fag" and "faggot" and "pédé" by both people I know and people I don't know, friends who are gay and straight boys shouting from their cars. It's not usually that the words themselves bother me, but the fact that the words can be meant as a threat and sometimes accompanied by violence. But I also know plenty of gay men who use the word "faggot" and have no qualms about it and it's usually no big deal.