Children of my generation never called each other "fag" or "queer" because no one ever talked about that sort of thing... and it wasn't talked about because it was considered nasty. Our names were more about physical imperfections.. "four eyes", "cannonball", "giraffe" that sort of thing...and no one's lives were ruined because of it.. it's just something kids did.. you took your lumps and moved on.
This is nothing more than training children to the concept of "thoughtcrime". It will teach children FEAR OF IDEAS. The only ideas allowed are pro-left ideas.
I hate to say this but it seems we need a specific law which prohibits imposition of thought crime, and protects diversity of opinion in schools. Somehting which will allow teachers who violate to be stripped of tenure. (ie you flunk because you support GWBush)