I wouldn't look too deeply into it. Just a bunch of prepubescent morons getting their jollies in their mum's basement. These are the same kids that cross the street when they see you walking towards them. I'm white and I mute these kids cause a)I don't want to hear it b)I don't want guests in my house to have to hear it and c)I don't want to even accidentally acknowledge some of the things that are said. In reference to the n-bomb, it definitely became more prominent with time. Initially I only heard blacks using it - and I feel confident when I say this because I knew the people using the word. Then there was a small segment of the XBL population that created accounts and played online w/the specific goal of dropping racial epithets. As w/anything else, once people recognized that saying &*#^@ would get them some attention, it snowballed. Its fairly similar to the usage pattern of homosexual slurs, the key distinction being that LGBTQs haven't been victimized TO THE EXTENT that blacks have, nor do the homosexual slurs carry as demeaning a connotation as the n-word. Those are the only two reasons that I can come up w/to isolate why its mildly acceptable (outside of NT) to use homosexual slurs out of context.
Keeping in mind that the vast majority of these kids are just kids using words that they don't completely understand, and most of the rest will not act on any genuine hatred, the problem is pretty much contained w/in XBL. The only tangible problem - and it is a well-defined and fairly troubling issue - is the fact that so many Americans have developed hard and fast hateful opinions on most demographics of society and yet have no idea why they hold these opinions and cannot formulate a decent argument to back their opinions up.