now "gay" is a "bad" word!

Initially seen at atrios.blogspot.com :

Teacher Sues Gay Mom Over Classroom Discipline Charge

This one is too much! A 7 year old son of a lesbian is reprimanded by his teacher for explaining to another student that he has 2 moms because his mom is gay and explained that: “Gay is when a girl likes another girl.”
He was made to write: “I will never use the word ‘gay’ in school again”, because he was told that "gay" is a bad word!
His mother is suing the teacher for discrimination and the teacher is suing the mother for defamation of character!
This is just revolting! Could this possibly have been any more innocent and matter-of-fact? The teacher is an obvious homophobe who should not be teaching children!