Everybody has certain predjudices and is "racist" to a certain degree. I think it's just the way our mind works. We like to connect things, group people togheter and judging people on their looks is the most obvious and easiest thing to do.
I read that "Dog" has been using racial slurs for his whole life. Kinda funny considering one of his ex-wives (with whom he had three kids) is half mexican. I think this kind of racism gets passed from one generation to the other.
On the other hand, as long as he treats every black man with respect in public and treats them as equals i don't see why he should be punished so severely. It could be that he used the "n-word" just as a insult to specific black people he doesn't like. He could have called her a "bitch" or "ho" and nobody would have cared.
Not that i want to defend him or anything, he's as white trash as they come. Just funny how everybody is sooo PC that they make all the fuss about this and real scandals hardly get press coverage.