To be expected from adolescent nerds safe from physical reprisals. I don’t mean the Microsoft engineers but the players :)
In most cases I think those words are used for their shock value (however diminished that may be though their constant use) rather than having a true racial or homophobic charge but are unacceptable non the less. Just because I steal a flag from under your nose and kill your entire team doesn’t mean I want to hear 12 week ass 13 year old attempts at insults in my head phones. If I took the time to woop you so convincingly I think you should put some effort into your insults.
We need new words and chat acronyms that sum up a persons ineptitude at a recent action in a game and the superiority of the person using it.
CAUFAEYD is the only one I can pronounce
"Complete and utter failure at everything you do" has a nice middle eastern ring to it.
TWTSTIHES: "That was the stupidest thing I have ever seen"
HWHDYMWSY: "He was half dead you moron what stopped you"
ABMCHKTG: "A Blind money could have killed that guy"
Making house calls to scare the ba-j-sus out of them might be too far. But you should be able to record them and have Microsoft send a tape to the bill payer aka mom and add the cost onto bill with a note in case tape is intercepted.