Here's an article (
http://www.nytimes.com/2007/02/18/books/18newb .html ) published about the event and, on the whole, it's fairly well balanced, giving the librarian's overall reasoning and viewpoint. I think, in balance, we've all known, at least here in the U.S. (I assume children are nearly the same in the U.K.) 9 to 12 year old children, some of whom would readily understand the use of the word in question. But, we've all known many children that would ask their teacher, after using the book in the classroom, the meaning and implications of the word. I think it's just such an uncomfortable situation that most of the objectors are concerned with.
Such education is better done in the home, in my opinion. Sadly, it's not done very well, if at all, but that failure of parental responsibility shouldn't impose a burden on the teacher who has, perhaps 30 or so childern and 30 or so sets of parents to be concerned with...