I think it could be more to do with the very offensive N word. The lone G can be utilised to spell out that word, and that would be very offensive to - I would hope - most people. Swearing by using the F U, ect, isn't as offensive, it's just plain rude, though I can't say swearing particularly irritates me.
I think Anet have it right. I don't want to see offensive words about race being easily used in names on a game that's meant to be played for fun, and not used to bash or degrade. If that's too 'PC' for ya or makes me a prude, or 'afraid of words' then so be it, I'm happy to be that way than not find nasty words about race offensive
Find a better name for your character. Spaces look stupid anyways