When used correctly, profanity adds to the game, see Vampire Bloodlines. Now, when you have profanity in a game where such things dont belong (see most fantasy games), it does indeed detract from the game.
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I think it worked well in that game because only the people who were similar to the R/L people you'd find using it WERE. Other games, even ones not in a fantasy setting, it wouldn't have been so appropriate. For instance, what if they'd had the Prince talking like Jack...just wouldn't have worked.