I identify myself as a homosexual.
I’ve heard homo being used in a derogatory way as an insult. That usage should not be tolerated.
Retarded is just a medical term, yet you can use it as an insult as well.
That is what this “specification of conditional” aims at. It’s fine to use the word in a descriptive way, you’re just not allowed to go around angrily calling people “fucking zionist”