I agree, but I don't think everyone else would agree and that's the issue isn't it.

Most people read 'look at this faggot' as being homophobic
But if I infract a guy for that, what I'm gonna get very often is him saying "so-and-so is my friend we're just having fun - people were able to say fag in this thread and this other thread so why not me?"

Keep in mind what the actual point of my post is - I'm not asking if you think 'look at this faggot' is homophobic but rather I'm wondering where you draw the line and how you'd decide what's allowed, what's not, what's just a regional dialect and if that should be allowed and so forth.