It's pretty clear what is and isn't allowed.
The problem I have with this argument is that so many nasty words ARE allowed. There seem to be a few that CC take offence to, but words like "f**king", "c**t", "r****d" etc. are considered perfectly fine. If minors are on here, then shouldn't we ban these too?
From the Bigotry guidelines:
Bigotry includes racism, sexism, ageism, homophobia/sexual orientation bashing, religion bashing, lack of religion bashing, or wishing violence on any group of people, etc.
Bigotry takes into account historic events, emotional baggage and generally accepted associations with a term, phrase or intent - posting "White Power" in a topic has a history and is bigoted, posting "Green Power" makes you an environmentalist.
"Fucking" and "retard" are not terms which apply to any protected category above - no specific race, gender, orientation, or religion. Hence, they are allowed.
"Cunt" may be considered derogatory to women, but CC has determined many times that it is allowed.
If you use a word that is bigoted to one of the above protected groups, you will be warned. Still, for the 10th time, not sure how that is unclear in the least.