Gothix, a Dragon's Call(Link) player, was absolutely ****ed off by [GH] Haze, a player volunteer, due to the action of muting him in game. Furthermore, Gothix thinks Haze has a strong discrimination for the whole gay community. Gothix is very sensitive about this kind of problem in game. He decided to give the whole GH(Game Helper, player volunteers) team and Dragon's Call an official warning after he found out that he could not even type the word "Gay" in the world chat (The word "Gay" is in the in-game filter). He stated that even Blizzard had received a Gay Rights Warning in order to tell Dragon's Call official this was a serious problem. Also he reminded everyone that the Gay Pride Week 2010 was coming soon.
It seems to me like the admins were trying more to prevent any discrimination rather than to cause it. You can still write "homosexual" can't you? I mean the word "gay" would more likely be abused by players and used as an insult if it weren't censored. This way people can't abuse the word and calling someone "homosexual" doesn't have that certain flare although it's still grounds for discrimination.
I use the word Gay when I'm annoyed at stuff "Ahh my pc's being so gay!!" "Oh my god, stop being a gay!" and I'm actually gay. XD lol, I don't really care about people hurling the word back at me since I use it myself as a derogatory term sometimes anyway - though to clarify it's not something I'd use to intentionally bash, insult or hurt somebody - just random things that annoy me, generally inannimate objects XD like my pc - stupid gay thing ¬_¬