This is one place where I thought South Park got it wrong. I get what they're saying (and I really did love using the wrod faggot like they did) but if someones been beaten, thrown out of their home and called a fag because they were gay - I don't think this explanation is going to cut it with them.
That's fine. They might have to deal with the fact that words are words and sometimes when people are allowed to speak you hear things you don't like and have to move on like a normal adult.