I saw the stories and the video tape in question. I can't speak to the term "Paki" as it seems to be a term used in Europe as opposed to the States, so I have no idea if it's always meant as a horrible slur, or something people can say to one another in a kidding manner if they know one another.
Intent matters, that much I know. And there are always double standards in these situations. Sort of reminds me of being in college and hearing all about their "hate speech" codes while hearing African-American students drop the N word with abandon and no one doing a thing about it. Had a non-black student done the same thing, they'd have been in a hell of a lot of trouble.
When white people use(d) the term "nigger", it was
always as an insult and/or a slur. The Black people took the word and began using it between themselves, both to defuse its hurtful meaning and as a term of solidarity.
Racism is still very much alive and well in America. Mostly from talibangelicals and Republicans.
I'm aware of the fact that many black people have adopted that term as a way to take the sting out of it, but I think you're leaving out a lot of middle ground.
The N word is not always used between black people as some term of endearment. In college, I witnessed a few confrontations between African-Americans in which that word was used to inflame the other party. I also knew of a group of black kids who hung around with a few white kids and the white kids used that term and no one cared. Likewise, the white kids were kidded about their racial background by the black kids. And again, no one cared. I also worked with a group of women who addressed each other as "bitch". The looks on the faces of people who were new to the area was one of utter shock. I also worked with women who made it clear that no one should ever use that term to address them.
Like I said in my initial post, intent matters. I've worked with people of all colors and ethnic groups and have seen all sorts of playful banter in which white people call them slurs and vice versa. The problem arises when these zero tolerance policies are put in place and then a whole slew of exceptions are made based on race, but indifferent to intent.
I have no idea what baggage the word "Paki" carries with it in England, but I'd be interested to hear what the Prince's colleague has to say about the matter. I know things are a little different in the military. I'd bet Prince Harry has been called "inbred" more than once.
I would also disagree as to where one finds racism rampant in this society. I see it in all political parties, socio-economic classes, and ethnic backgrounds. Wayne Brady was being interviewed by Tyra Banks recently (they have her show on at work... ack!) and asked if he'd ever experienced racism and where. He said the most racism he was on the receiving end of came at the hands of his own community because he was constantly criticized for "acting white". This is another sad phenomena one sees at college campuses, especially community colleges. When I was finishing up a few credits before moving on to uni, I took a psychology class in which a group of students would howl in laughter when the tests were handed back. They thought it was just hilarious that they failed them. They'd slap their legs and be bent over in fits of laughter as the next person got their test back and had an even lower score. The professor, who was black herself, was not amused. This sort of negative peer pressure is sad, to put it mildly. Thankfully it's more less common on university campuses.