See, I think that this argument (sorry, both!) is interesting because it seems to me a microcosm of the whole brouhaha.
It has revolved around Clanchy's use of various terms, words and phrases. Not everybody perceives these words in the same way. Some people find them offensive, some find them racist, some find them neutral, some find them positive.
The context matters enormously, but words are also taken apart from context and examined shorn of any irony or 'archness' or qualification.
So who gets to decide which is the correct interpretation? Or whether it's acceptable to quote someone making a comment in poor taste? If every character quoted in a book has to be carefully tested to ensure they're not being offensive where do we end up?
Is art/literature allowed to be offensive, to present views we find distasteful? Is it always a completely accurate reflection of the author, can we always be sure of the author's motives?