Racial slurs are not about equality but rather about respect. Such slurs have been used histirically toward anyone the user wanted to make feel inferior or insulted. As a means of feeling superior themselves.
While the context does matter perhaps it was adopted as a term of affection or unity as a means of taking control over said historical verbal abuse and is definitely used differently now. It doesn't mean what it used to in this regard but part of the feeling of empowerment comes from selecting who may or may not use the word. Just the way it is.
That aside, my kids know they better not use ANY slur of any kind toward anyone of any race or they will be handled appropriately.