This debate about using the N-word in American Eulogy reminds me of a story I wrote about a girl whose family sued a local school district for racial discrimination. Allegedly, students hurled the N-word on a daily basis while school officials sat by and did nothing. One administrator apparently even admitted she uses the word frequently herself. As I was preparing to write the story, I asked my editor if I should use the word "nigger," or write "N-word," or put "n-----," or some other censored form. He told me censoring the word diminishes the wrong these people did. He suggested I print the full word "nigger" when describing the allegations against the school officials, and I did.
In printing "nigger," sure, I probably offended some people. But I wasn't printing it as my own words. I was printing it as the racist school official's words. The point is to make people feel uncomfortable by using the word in your quotation or paraphrase — to show how wrong it is when used this way. I think the same argument can (and should) be used for American Eulogy. Green Day obviously isn't saying it in the manner rappers or racist white people do. The band included it in lyrics as a quotation, while quoting a mentality the song is clearly against. The point is to make you uncomfortable by using the quote. Fuck, the phrase is even put in quotation marks in the lyrics, which rarely happens:
Fight fire with a riot
The class war is hanging on a wire
Because the martyr is a compulsive liar, when he said
"It's just a bunch of niggers throwing gas into the ..."
So, yeah, my conclusion: The point of the lyric is to make you uncomfortable, but not with Green Day. You're supposed to be mad at the "martyr/compulsive liar."