What Are Ya: A Poofter or a Wuss?!

It seems the NZ gay community has its knickers in a twist, over the word 'poofter'.
Last May, one of the breakfast team on More FM Tauranga used the word on-air... and the Broadcasting Standards Authority (BSA) subsequently received a complaint (yeup, one complaint).
In its wisdom, the BSA cleared the station over the exchange, which you can listen to here...pretty innocuous, right? The BSA ruled the word was used to mean 'wuss', rather than as a term of abuse directed at gay people. But its decision has upset some gays - a Facebook group has 200+ members, calling for an apology. Instead, yesterday morning (Monday 16th.August) More FM Tauranga replayed the 'poofter' clip, asking listeners to vote on whether it should apologise.
Now, there seems to be a pallet-load of 'PC preciousness' associated with this story. I'm not gay but over the years I've enjoyed many pleasant hours socialising with gay colleagues. And I've heard them call each other "faggot", "bugger", "homo", "dyke", "queer" (and other names that still cause me to cringe).
So, if it's ok for gays to slag off each other with such brutally honest names, why is it not ok for the word 'poofter' to be used on-air? And let's reiterate: this instance was ruled by the BSA to be not any form of gay abuse.
Is this a 'beat-up' by gayNZ.com? A moment to milk mileage out of a minor melee in a miniscule mug?! Or perhaps this is *gasp* just the tip of a vile verbal gaybashing iceberg? The rise of the rednecked recalcitrant vocabulary-endowed viper?
Come down off that hobbyhorse, ya wuss - your average kiwi bloke just ain't no cunning linguist!
*stage whisper* Yea, he's probably a poofter!

(Interesting to see that on the gayNZ.com website in May is an article covering the same issue, about which label fits you best.)