I don't like the woman any more than anyone left of Jerry Falwell does, but let's be clear: She didn't call anyone a "nigger." She merely observed that the word is often used in some places and taboo in others. If she had said, "Turn on HBO and and all you hear is motherfucker, motherfucker, motherfucker..." would there be this much outrage? If anything, progressives would defend her, because the right to speak taboo words was once a free speech issue.
As Lenny Bruce knew too well. Amusingly, the first video I could find of his famous routine is from the movie about his life, so here's Dustin Hoffman:
If anyone has any evidence that making words forbidden improves people's attitudes about race, please let me know. This seems to be another issue of faith by anti-racism theorists.
See also: In Defense of Dr. Laura