Yes it is a slur (a type of dehumanizing pejorative), but they are unpopular right now so most people are ok with that slur.
The real question is do you want to moderate it in your community?
You will get push back, the trolls will say you are supporting the slur group, and will try to make it into a big thing.
Personally, if you have a community rule against slurs and you enforce it, I'm ok with that.