In my opinion, the best way to minimize racism is to go back to the days where people said those things with no ill will what so ever and people didn't make a big deal of it. Now days, the term racist gets thrown around so much that it completely waters down what it means to truly be racist. I would rather a select few be called racist and make them feel alienated because they are such a minority, than have half the population be called racist because of the slang they use.
I don't know anyone in my life that truely hates people because they are gay. But in todays over the top pc world, a lot of people i know would be considered homophobes because they occasionally throw out a "that's gay". It really makes it hard for the truly stupid people who judge someone based on sexual preference or race to get singled out from everyone else.