All she did was use "John Edwards" and "faggot" in the same sentence.
The Facts
1. Why is it fine for the Democrats to condem Republicans, but not Republicans to condem Democrats.
2. I have not heard one Democrat deny that John Edwards is a Faggot.
3. Are Democrats angry that Ann called John Edwards because he is a Faggot or do the Democrats wants America not to think he is a Faggot?
I believe that was completely intentional on her part. She allowed an inference to be drawn by those who routinely attack Republicans with vicious words (we're all heartless "Nazis" who want to starve little children and throw Grandma to the curb to freeze to death - how many times have we had to endure this crap?) while all the while adopting an air of smug self-righteousness.
To me, Ann Coulter's words have had this effect: they have revealed the hypocrisy of the Democrats and the cowardice of the Republicans. The Democrats are running around shrieking like a bunch of....pansies, while the Republicans have rushed to distance themselves from her, proving once more that they care far more about what their enemies think of them than about the truth.
Just for the record, I know a good number of "gay" people who I like very much as friends, and certainly don't consider them evil, even if I personally disapprove of their lifestyle. I will never hate people for simply being homosexual; I detest those who are willfully dishonest and cruel while pretending to be victims. That, to me, is the textbook definition of a "pansy". And yes, that's not the quite the word I would use in private, but it starts and ends with the same letter.