If someone does it well, they wouldn't get reported or banned because it would be a good experience for whoever's witnessing the character and the person's roleplay. Using words like that isn't good roleplay. But that's not to say you can't still portray a racist, homophobic character. Just takes a bit more creativity than that - which isn't hard since it's a roleplay server and people are here for that very reason - to be creative and express themselves, and create stories with other people.