You're half-right, for one, the "no using it offensively or calling names" is perfectly correct. There are some words when used offensively are bad, and infracted accordingly if used in that manner. Let's give another example, the term 'gay' is perfectly fine, and not blocked. But when someone flames it upon another member in the offensive tone, it's not okay.
As for your second part, umm... I don't think you understand. Words that are blocked by censors (such as your example) can not be used in any regard, not even the "*"'s of the blocked word are allowed, falling under censor bypass.
I'm just referring to this one word we were talking about earlier, others like your example are blocked and cannot be bypassed or used, but "Oh haha, what a kickass post" is fine.
I can assure you the staff have numerous words banned, and the use of such will be infracted for, but as for Non-blocked words.... When they're used in an offensive manner, they fall under the same problem, and delt with. But in some other cases, fine. Overall, whether or not the non-blocked words become problematic to the safety of the community or it'ss members, are up to the discretion of the staff. And I can assure you we take the proper measures for a friendly, safe, Pocket Monster lovin' environment. >:D
Hopefully, I made that somewhat understandable. XD