"The only winning move is not to play"
This is why we don't use the words "nigger", "kike", and "faggot" as insults anymore, why calling somebody a "pussy" or "woman" for not being aggressive or assertive enough is generally frowned upon, and, yes, why casually dropping the word "retarded" like it ain't no thang will get people for whom the word actually means something politely asking you not to use it anymore.
Communication is a two-way street, and it's up to the listener to determine how they interpret the words coming out of your mouth. I'm amused and irritated by how many people get frustrated when they're told that their choice of language bothers somebody. It's like, hey, here's an opportunity to refine how to interface with the world! And a bunch of people see that opportunity and go FUCK NO, I'M TIRED OF HAVING TO DO THINGS, SOMEBODY ELSE JUST STOP BEING OFFENDED OKAY
If you think the correct answer is to try to get everyone everywhere to not use whatever subset of words you subjectively find offensive versus just IGNORING THINGS THAT OFFEND YOU, I'm not really sure what to tell you, other than perhaps:
Good luck with that, you retarded faggot.[1]
The lesson we learned was how to handle being offended: to challenge the offender directly, find a resolution, without involving an internet mob.
OP did this the correct way, and you reacted with hostility instead.
"Retarded" is a word that the bullied (and their loved ones) have heard all throughout their lives used in a pejorative manner. It is also rarely used IRL in a non-pejorative context, even though the definition exists. For someone to associate the word with its pejorative and insulting context is not at all unreasonable.