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But it's not an obvious abbreviation of the word.

There needs to be a distinction between bad words and words that are put to bad ends.

Various words (nigger, chink, cracker) are bad in and of themselves. The words don't bear any resemblance to the name or a characteristic of the group they describe and have no real use other than to insult. There exist other perfectly uncontroversial names for these groups.

Others retain legitimate uses as shorthand. 'Black' remains a generally acceptable way to refer to people of African descent. Likewise 'white' for Caucasians. These words are not meant in a derogatory fashion and are used merely to save space. While someone could certainly use the word 'black' in a derogatory fashion, the word itself is fine for use in polite society.

I think one also needs to consider that two words that are spelled the same don't necessarily have the same meaning. 'Jap' as a slur and 'Jap' as an abbreviation of 'Japanese' are two entirely separate words with separate definitions.

To my mind, anger at people who use the word 'Jap' in an entirely innocent fashion is almost as bad as the vitriol generated whenever someone uses the word 'niggardly'.