Yes, I would definitely say something. I would, in the future, immediately correct someone for using the term "->-bleeped-<-". We all find it offensive. It's meant to separate us from other "more legit" groups like the Norms (unvariant gender people), gays and lesbians. I would say to this person, "he is tg & just a guy like anyone else".
Julie was watching the Real L word the other night, and one lesbian says to her friend, "what would a ->-bleeped-<- know about the Dinah event in Palm Springs?" Like we don't know, or I guess in her mind, are qualified to attend. I hate this ignorance and separatism from our own community.
As for outing yourself, if you stick up for people, you will be known as someone who is protective of their friends. If anyone thinks less of you, why would you even want to be their friend?