I would like to remind everyone, that not so long ago, saying the words "God" or "Jesus" spoken out of biblical context was considered blasphemy and punishable by death.
All Nationalities and countries have a slang name to describe them, what makes one more offensive than the other? They are called words. Does the term "black fella" make you cry and ashamed? How about "white fella"? "White bread"? "Trailor Trash?", "Bogan?"
I don't agree with the findings that the words are not offensive, but agree with the findings that they are not offensive enough to be criminal.
I personally think "verbal assault" is a joke. Forget racial motivations for a minute, but if I were to call you a wanker or the like, that can technically be classed as verbal assault. Does calling somebody a name that hurts their poor little feelings deserve a criminal case? Or even a civil case for that matter? Or do people just need to toughen up and stop being offended at everything?