It's been made clear that the moderating staff are going to stand their ground. They gave you permission to use the term, just not in a disrespectful way. I don't think it is unnecessary to ensure that racial slurs are not used in an insulting and blatantly offensive manner.
This is the last comment I will make on that.
I also wanted to clarify that I did not intend to come off in an offensive and 'racist' manner. I simply stated my feelings, admitted that there was nothing to be done about it, and accepted that the term can be used. To top that off, I cordially and politely welcomed you to the site.