I think you've misinterpeted his position. He's not saying that you should scream the word ni--ger at black players. He's saying that making a big deal of the word, only makes people more likely to use it. At least thats how I'm interpeting what he said. And he does kind of have a point. Anyone remember the Wanda Sykes commercial that was saying that the word gay was a slur to the homosexual community? That commercial annoyed the ever loving hell out of me, and I consider myself, a reasonably tolerant person. There comes a time when PC'ness can go a little to far. IMO.
Sidenote: I agree that you shouldn't yell homophobic,racial, or sexual orientation based slurs, at anyone.