They both are similar as they refer to a certain group of individuals in a derogatory fashion
The only word suitable is that of not saying it at all. As stated by Grave, "homosexual" is a much better to word than that of "faggot".
Sythe is a website that should exhibit respect for others or it defaces the website in a negative connotation. If we are trying to promote the forums, then we, as Staff, need to keep them in order. Otherwise, it's like a whole group of 8 year olds running around with childish remarks, which is completely unacceptable.