When I was looking for a guild a while back, this was one of the questions I asked: do you have racist chat in the guild? And it has nothing to do with me being offended by anything people on the Internet would say.
When I was 13 I had to move to Georgia. Until that time, I had no idea there was a whole American subculture that embraced unbridled racial hatred. The irony was not lost on me that these were some of the dumbest people I've ever had the misfortune to be around. I've never found a person I think is intelligent or who I would otherwise respect and uses racial slurs. Whether they're outright KKK/nazi or they claim they're "just joking" hasn't made any difference. They've all been very stupid trashy people with whom I have no desire to associate in any capacity. So basically, it's a very convenient idiot-filter litmus test, regardless of the specific social context.
Hard to say if other people in guild (back to the OP) were really OK with it or if they were just uncomfortably laughing along or passively saying nothing. But whatever the case, it is not a guild with which I would want to associate. To me, the game is largely fun because I like and respect the people I'm spending a lot of time with. Remove that and there is little point of playing.
It is not a "yes" (why would you accuse me of being the type of person who uses racial slurs and then complains about the mute? That was a pointless and baseless accusation considering I was only pointing out your use of the word "Retard" as an insult while complaining about people who insult other people with strong slurs, lol). Further than that, though, why do you think that I care you're putting me on ignore? Why do you feel the need to announce that? Why do you think anyone fucking cares?
And thus the virtue has been signaled. Many times on this thread too.
There are many kinds of people one might not want to raid with. And they tend to congregate in like-minded groups, for a good reason. I used to do my raiding in guilds with actual age limits, so certain kind of behavior was a bit more rare. That's not to say old geezers can't be a bit rowdy or immature in their ways at times.
If the thing really bothered you, you should have just left and found a better fitting guild. What you did has changed nothing, the person will still think the way he thought (jokes or not), the guild is still ok with that kind of stuff (jokes or not), only thing changed was some inconvenience for the person if it was just a suspension and not a ban, and guild having to pug a tank.
Personally I draw a limit on threats of violence. Words are not violence, but they can convey readiness or willingness to cause physical harm. And in those cases a bit of a cooling period is well in order.
At the very least people could stop getting offended for other people. Usually they do it pretty well themselves in the current year.
It's fine to report, you're not a wuss. On the other hand when you do it, don't mention it, you expose yourself other people's opinion which is not needed in this case especially since guildmates were present and can act upon it like putting you aside from guild/raid because of it.
In general tho, never mention that you've reported someone, just report and move on, mentioning it might be tempting on the moment but serves no benefical purpose at all.
I would never report anyone, as I think generally people are too easily offended BUT when people go this far and become really racist and horrible, it's a good thing to report and you did the right thing
for me the n word is nutella. mmm hazelnut spread. so encompassing and inviting to any social group