Doubleplusludicrous
I don't know the background, or what really happened in this story. Claim is, a teacher was reprimanded for using the word "niggardly".... It seems likely that, since the teacher is cooperating, she probably did use the word precisely because it sounds similar to a racial slur.
But I don't ever remember taking offense to people using the word KITE, when I was a kid. I read stories and instructions with words like fop, chink, day-glo, etc with no observably ill effect, probably because KIDS DON'T THINK THE "BAD" THINGS UNLESS THEY'RE TAUGHT TO.
If someone's offended because they are ignorant, can't we just explain things to them? (On the other hand, fourth graders rarely need "niggardly" in their vocabulary, so the teacher's intent is suspect.)
Subtlety is not one of my strengths