I don't mind it...at all....
When someone uses the "n-word" for a black person, it is from a long tradition of using that word specifically as a derogatory term. But, actually, when black people were still slaves... the meaning wasn't seen as derogatory, it was just another word for black (since both meant the same thing, both were equal levels of derogatory).
We are still just coming out of that early period. ->-bleeped-<- is obviously offensive (since it is a porn term), but ->-bleeped-<-? Nope, it really simply means "transgendered" to most people (and being transgendered is bad enough on its own). Actually, I'm more offended by transsexual (since that implies you are transsexual, when I actually identify as transgendered). ->-bleeped-<- seems like a relaxed way of saying "trans" and I use it alllllll the time, even though I try to use "Trans" more (actually, every trans person I know in real life uses ->-bleeped-<- also... no one seems to have a problem with it in a casual sense).
If someone in business were to refer to me as a ->-bleeped-<- though, I might be a bit more offended (since it is such a casual term,
Basically, I guess it really depends how they are using it. If they say "transsexual" or "transgendered" with a disgusted / judging inflection, I would be offended also. But if I met some guy at a club and he innocently goes "ohh you are a ->-bleeped-<-?" I would just laugh and say "yup" (since, he isn't really judging, it is just a shorter version of transgender /transsexual).
I think teaching trans people to be offended by the word does more harm than good though. Maybe in the past "->-bleeped-<-" was derogatory and horrible and everything else....but today it really isn't (simply there is a big group of people insisting it is and getting angry at people who aren't using it in a negative way at all). All that does is make us seem overly aggressive / sensitive and jumping on people who aren't meaning any offense (which is a sure way to push people away and think we are crazy).
Heck, even I get pretty confused with all the semantics in this community ~_~_~ For example, a pre-transitioned person? Do you call them by their "new" gender that they aren't presenting as but are beginning to identify as? Or do you call them by their old one until they get a little further and make the switch publicly?
And the entire transgender / transsexual / transvestite thing? Really, you can't expect someone who has never met a transgendered person to know all this stuff ~_~ If you get mad at them because they haven't been introduced to it and make a "mistake"... it (again) just makes us seem hostile. ->-bleeped-<- / trans is the least of our problems (if it is one at all).
How about first step we just get them to accept we aren't all sex workers or perverts? And we can battle the public on proper semantics (that we can't even agree on lol) down the road ~_~ ->-bleeped-<-? Great, yell at them for that. ->-bleeped-<-? Meeeh, let it slide.