sometimes i'll use words deemed inappropriate by the majority, but most of the time it is in a context aside from their inherent meanings. like i will be talking with a friend and he'll say something stupid, i'll say, "you fag, don't you know yadda yadda..." - or "LOL shutup n1gg3r! (gfy censorship hence the numbers)"
i've said it many times, george carlin points it out perfectly:
George Carlin - Racial Slurs