DWI the moderators talked about this a lot and the majority have always agreed that it's best not to use the K word because of the potential for its abusive use by non-Jews and the impression it gives to those considering joining the movement. In this case it may be apt, but it's upsetting for me even as a non-Jew to see the word thrown around so callously. Even Chaim decided that it didn't help the movement for him to keep using it even though the cases he used it for actually applied.
I have to agree.
DWI, you are absolutely correct in your portrayal of these people using that word. Nevertheless, it does more damage than good, and just becuse something is true, does not mean it has to be said.
Then again, I cannot tell you not to use it, as you are 100% correct and it is wrong to force someone to stop speaking the truth, regardless of what it is.