I am of the opinion that a word only means so much as the way it is interpreted. If someone takes offense to any word, N word included, they are empowering that word. When they ignore it, it loses its meaning. Think about it -- we don't think much of the words "Damn it!" anymore, but consider what it means -- it's a command, and taken in its original context, it's pretty harsh. Nowadays though, it's been used so much it's in the average person's every day vocabulary. It has lost its impact. Hopefully, one day, the N word will lose its impact as well. Because damn it, if you're going to insult someone, do it with your own wit and strike a point that actually has a meaning rather than just relying on an ages-old word with a gawd-awful history that doesn't even add any weight to what you're saying.
Doesn't stop me from joking about it all the time, though, but I joke about pretty horrible stuff regardless.