Every family...even to a smaller extent relationships...has their own language that they use in regards to one another. You may call your significant other Fartface, Dipsh!t, Cuddle Nugget, etc. You may call people in your family offensive names and get away with it because it's said in YOUR context. I would never tell people what I call my boyfriend, siblings, etc. in public. It might offend others, but in my context, we love it and laugh.
I do agree with Whoopi and J. Jackson (at least on this piece...not the cutting off of the balls of B. Obama). You have a certain culture in your family, friends, relationships. You would NEVER use these words in public...but you use them amongst each other. Call these people whatever you want...as long as you want to. That's what J. Jackson and Whoopi (at least on that episode of The View is saying). The public use...not acceptable. J. Jackson wants it OUT of music also! I don't think it has a place in a public sphere...in a private, it depends on the relationship you have with these people.
Elizabeth Hasselbeck had a stupid argument. I don't want to tell my little girl what she can and cannot say. Hi- when I was young, I was told not to swear. Then, as I got older, you can swear here...but not here. It's not teaching kids specifically WHEN to say WHAT- it's teaching them about audience. And if the kids don't catch on soon how to tailor their speech to an audience, they are royally screwed.
On another tangent...it's ownership of the word also. I don't say that word, but if people want to turn that word into a positive connotation for them, go ahead. I still hold baggage for it (negative baggage), but if others say it privately, go ahead. Words have changed their connotation over time since the beginning of language- why should this be any different?