I agree there Sharky, one can be too politically correct. If someone's being an ass, a person should have every right to tell them they're bein' an ass, if someone is acting the part (ei: a female being a B**** or a male being a D***) well, then they've earned the title. Same with the holiday stuff as you mention, yea, I'm not Christian, I don't celebrate Christmas, I celebrate Yule, but if someone walks up and says "Merry Christmas" then, hey, they're just being polite, no harm there, I'll tell them happy holidays back ya know. Problem with trying to be too politically correct is that, no matter what term you use, SOMEONE is going to take offense to it, if you say ->-bleeped-<- someone may take offense, if you say gay the guy next to him may take offence, it you say homosexual then the guy a few feet away may take offense, there's some of these situations that you just can't win, with some things there IS no real word that no one will take offense to, that's a big problem with everyone wanting to be politically correct, is that politically correct doesn't mean the same thing to everyone, we all have our own ideals on what is proper, what is offensive, and what is down right insulting. So, more or less we're left to taking a best guess and hoping we don't offend someone, but there's no need to worry about it to the point of making yourself nervous bout it cause, well, ya can't win 'em all.
Using down right, undeniably insulting and derogatory terminology is one thing, but if you're not prone to using the terms that are accepted as, without a doubt, degrading (which no one SHOULD make it a point to be degrading) then there's no reason to feel like you're walking on eggshells. Many terms have different contexts and stigmas attached to them on a regional and even individual basis, worry bout that could drive someone nuts! I see it this way, veer away from right out, undoubtedly degrading terms, be sure ya aren't using a demeaning tone and if someone does happen to get offended by the term you use, apologize, inform them that you've never found it or meant it as offensive, and move on. If they decide to make a fuss about it after that, well, that's their problem, because at that point they're obviously not taking into account that others have comfort or discomfort with terms that vary from their own views.
Win so ya lose some, and tone says a lot bout how ya mean something, so if you're not trying to insult someone, hopefully that'll show in your tone.......hopefully. . . .