OK, I get the feeling that you guys don't really understand what context is. Here's a rough definition:
"The set of circumstances or facts that surround a particular event, situation, etc."
In other words, context has nothing to do with the definition of a word, or the way it's used in a sentence. It has to do with who's saying the word, what tone of voice they're using, and why they're saying it.
That's the argument I've been trying to make. The truth is, there is no word in the English language that is right or wrong in and of themselves. The people saying the words are the ones who ultimately decide whether the ones used in that particular instance are good or bad. That's also why Jonnie kept saying "I say them all the time to my friends and we don't care". Because, in that particular instance, the context changed it so that it wasn't an insult.
Do racist words have negative descriptions attached to them? Yes. But as I said, the context ultimately decides whether or not those descriptions matter at all.