Frankly, the point of the university today is to provide a service for paying customers. When you see a job posting that says that a bachelor's degree in such-and-such field is required, the employer is hardly asking to get candidates who have spent four years freely discussing ideas like they're one of the figures in The School of Athens; they're asking to get candidates who know certain things and have experience doing a bit more self-directed work than they would in high school. (That's also why the university degree can be reduced to a GPA instead of a dissertation or set of publications.)

Now, it's definitely a problem for society that people who want to spend their lives engaging in academic debate, which is a thing we should encourage, can rarely find a job that supports them in doing so, and the closest they can find is providing vocational training to 20-year-olds who are ready to leave the academy once they've received the service they've paid for. But it doesn't really help either the professor or the student to pretend that the modern undergraduate classroom is anything else.

(Slight correction, this is an MBA class, not undergrad.)

This decision doesn't even make sense from the perspective of vocational training. Being able to hear 那个 without great pain and upset is a directly job-applicable communication tool - there are many jobs working with Mandarin speakers that students won't be able to handle if the word traumatizes them.

It almost makes more sense as an MBA class: How to respond to accusations of racial insensitivy 101.

Teacher got an F in this case?