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Paula Deen - PC garbage or a true issue?

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I know nothing about Paula Deen, nor do I care. However, recently she is facing a HUGE backlash because she admitted under oath to using the N word - it was about 30 some odd years ago that she said it. The fallout has been she is losing all of her endorsements, the cooking channel has dropped her show, and it's become a huge issue.

My question - is this a giant knee jerk reaction? She admitted to saying the N word - that is it. Is it really reasonable to believe that nobody in their entire lives has ever said a racial slur?

To continue off on this - if even uttering the N word in a private setting (she said it to her husband) is such a huge issue, should record labels or movies from now on ban all usage of the word?

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