Yeah, in this situation i'd say it's best to just have the involved parties ignore one another. If he had used a racial or ethnic slur, then i'd be all for it. But yeah, sounds like this guy acted like an idiot, but this community would be a fraction of it's size if we banned all of the idiots in general. Being that both parties involved violated the rules, I don't really think a ban is required here.
Also, no one in administrative positions are complaining about you using French in game. Now if someone was to complain,curse you out and tell you "speak English you -enter name here-", then you'd have a case for wanting to get them banned or kicked. But yeah in this case, adjectives and racial/ethnic slurs are not the same thing. In this case, the aforementioned adjective was used in a disrespectful way, but still not really racist.