It would be different if a racist word had been used. But "faggot" is a derogatory term for one who practices fudge-packing with same-sex pervs. It's not a race, creed, religion, color, etc. It's a nasty, anti-natural type of (mis)BEHAVIOR. And it should be criticized, at every level, and not held to some standard that elevates it above deviancy. And John Edwards certainly comes across as a faggot. If he's straight, I'd be shocked to learn it.
It seems that the conservatives that are criticizing her are focusing in on the part where she thinks Edwards is effeminate and NOT on the more important part, that if you think being a homosexual is perversion, you will be sent to rehab for your failure to conform to PC group think.