I get called retard about once per week.
People use it on all sorts of characters in-Rp (but really semi-oorp) when they lose arguments and oorp too. I mean I guess it's the start of moving against certain words being used in general.
I wouldn't leave over this if I were you - it is sanctionable, just hasn't been enforced. I am sure you will see a lot more sanctions now that the precedent is set