I'm fearing that I'm the one who is not explaining himself properly. I'm sorry, I'm not a native and perhaps I haven't used the best words to describe my thoughts, even though for me they seem clear enough. I'll try with another approach.
This case WILL be used for future references. If we make the precedent that making someone feel offended is enough to shut down an entire line of RP/behaviour/whatever, then it is as prone to abuse or even more than leaving open the "it's OK so long as it is not directed to a player with the intention to hurt"
It should be fine if it happens IC with no real ill will behind it, only representing the character's low opinion of a particular ethnic group. It's very obvious when it is done with the purpose to hurt (giant burning swastikas, anyone?), and in case of doubt, then no action should be taken (we'd rather not punish an innocent, even if that means leaving guilt free a hundred offenders; I think that was kind of the Magistrate's motto)
Hell, I could have been the one accused if one of my characters had met some other ethnic group when I started playing, as I played him as a very close-minded and annoying folk. Now I have become milder, and I agree that this is bad taste RP. But only that, bad taste RP. Nothing that we should make a big quarrel over.
To sum up: I pretty much agree with Dishman. This is only a game, what means that people should not come here with the intention of playing the victim at every little thing that disgusts him at RL. Play as a noble, think as a noble and act as a noble of the Middle Ages, and that will immensely mitigate any hard feelings you might have while playing. I hope this time I've gotten my point accross.
