I think what drza44 is the most intelligent justification I've heard for the everyday use of the word. If it is a word made to be horribly offensive to a group of people, than that group of people might be wise to own it and depower it. The word no longer belongs to the racists, it belongs to their victims. It takes one weapon out of their arsenal.
That said... as far as it appearing on TV I kind of agree with EJPLAYA, at least for something as family-friendly as the allstar game. That is watched by children who might not be able to understand the complexity of the situation, and the word.
Similarly, I swear, a lot. I don't think there's anything wrong with it. It places emphasis on the point I want. But I can't do it all the time, or those swears are just more words without any extra meaning. I want F*** to be powerful when I say it. If I say it every other sentence, what power is there? So if people, of all ethnic backgrounds, are inundated with use of the N word, it is no longer the victims word that they own, but everybody's word. And frankly I think those victims of racism deserve this sort of cultural concession.
As far as GP, I didn't actually see the game (can't watch the video at work now either). I think GP's "guilt" can be decided by whether or not he was mic'd up. If he had a microphone on him, he should know in his position he can't say that word. If it's like the mic's that pick up KG yelling swears in games, it's not his fault. Don't mic him up.