I don't see why that would be a problem. If you're going to complain about Xenogamers censoring slurs of any kind for whatever reason then I think you should complain about respecting other players rule as well. If what you want is to use slurs on the servers, plenty of people are going to abuse that. You already see people join the server occasionally spouting out the n-word like it's nothing just to start shit and are gagged/muted/kicked/banned for it and I would personally rather not have those people stick around just because you wanted to joke around with your friend.
That's probably because a lot of people are afraid to speak their voice. I know I've heard some condescending things said about minorities on the servers before but, in all honesty, I'd rather not say anything because I don't really want to argue with that person, especially if they got a good portion of the server convinced that a particular group of people are bad because they are different.
I'm sorry everybody wasn't raised the same and taught how to respect others.
Please keep in mind that staff is made up of human beings that interpret things differently. What's bad to one person could be completely fine to another and if someone is unsure they'd ask for a second opinion on the situation. This happens all the time with non-racial slurs like "fag" and causes confusion among staff members. While it is allowed in some cases, other times it's not and people constantly check if the word is used maliciously or not.