That requires people to understand context and nuance.
We live in a world where a guy wants to ban Mel Brooks' The Producers because he doesn't realize it's a satire of Hitler, not an homage. Lots of people don't or won't appreciate context.
The context of the original repo was very clearly that of an insulting word.
re: The Producers, with any topic you'll get one or two extremists of any varity. You should judge it not by "did someone want to stop this", but instead by "did someone(s) in power to stop it, want to stop it". One crank protesting outside a cinema is very different from the CEO of a movie studio deciding not to make the film.
The whole argument hangs on that point. I don't know where your optimism comes from. Seeing a lot of human behaviour on the net in this area, I have pretty much zero confidence that the right decision would always be made.