What the exlpl*tive!?

As a journalist for a school newspaper, I know that sh*t happens, and whether or not to quote it can be a problem. Some journalists are all for the inclusion of cuss words, whereas others avoid it with fierce opposition.
In a story I found on a blog site for the Pheonix Times, a memo was sent to a trickster writer from an entertainment section of the prominent Tribune newspaper, titled "Get Out." The writer cleverly replaced the f-word after it had been taken out of a DJ's name (Mr. William Fu*king Reed.) The newspaper's executives responded, explaining:

The cost to the company to destroy the altered copies of Get Out approaches $12,000. But more important than the money, I share with Karen a deep disappointment that someone would do this. In my entire 14+ years at the Trib, it’s been a joy for me to work with a team of honorable professionals.

So, where do I stand on the issue? I believe it's all about context. Had the reference been on the front page of the main publication, I would definitely disagree with publishing the full word. Still, since the DJ's title was featured in an entertainment section (and, aside from that, it was part of his name and not an adjective used to describe him) I would not be as hesitant to publish the word.

Still, executives are executives and, in this case, the reporter's joke did not resonate with the powers that be. So, here's to adjectives that don't offend, and managers that don't find humor in obscenity.