So would you take offense if I said something like "Ds's lack of sleep is driving me nuts" ?
I think (and it's just my humble opinion!! so please bear with me)you need to take into actual the context in which the word is used.
For example: I think the word retard is absolutely terrible. (I find it difficult to even type it). But, the word stupid, it can be an insult, but it is also used by young people in a very innoffensive way. (I've heard my nieces say things like, "Oh don't be stupid, ofcourse I'll call you" or something along those lines.)
Now, my DS has a brain atrophy, which has caused his general developmental delay. Do I think he is stupid? Hell NO, I think he is brilliant, because despite having his brain atrophy and having to work twice as hard as kids his age he is learning so much, and I am not just saying this, I think he is really clever. And I am going to make sure he knows this.
I don't want to cover him in cotton wool, he will hear the word stupid at some point. And when this happens I would like to him to just brush it off and have enough confidence in himself to know how clever he is. If I make a big deal of it, I think it will hurt him much more.
I know this doesn't apply to all kids with SN, but that is what I feel in my case.