Let's just cease the discussion all together. SEGAbits does not have strict rules on swearing, as long as they are not used to attack other members or for derogatory reasons. The forums do not allow defamation of race, religion, or sexuality of any kind.
Having said that, if somebody is gay, referring to them as gay is not an insult. When we start getting into terms like "tranny" and "nigga", I think it's best to just avoid them all together here so we don't end up in another one of these discussions.