I don't swear (though I hang out with the kind of people who'd make a sailor blush). But when we're discussing words, I think it's valuable to be specific and not dance around them. So I have no problem saying the words in this context.
I'm biased, being female, and white, and also being a non-swearer, but I'd give the edge to "****". I think it is more offensive than "******" is.
I don't much understand the desire of people to adopt swear words to describe themselves (although we took "Yankee Doodle Dandy" as our own, so I suppose I get it... a little). But it seems to me that Black people cheerfully call themselves "niggers", whereas I can't think of a woman who'd cheerfully call herself a "****". That's poor evidence, given that I'm judging from the media, not (much) personal experience, and not any sort of polling data, but that's my gut reaction here.
Also, when people say "Well they're just words, they can't hurt anyone," I think they're operating on a different wavelength from me. Teasing and taunting has led to suicide, and it's not that the individual words were bad words per se, it's the communication they were meant to convey. That's what words are, a medium of communication. You can yell "Fire" in a crowded theater and have people stampede until a couple of them end up in the hospital or even dead, and you don't get to make the defense of "Well, it was only a word," because you knew darn well what would happen if you said it in that context.
And yeah, teasing is something everyone's gotta learn to deal with sooner or later, from kindergarten bullies to drill instructors. When I'm babysitting and a little teasing happens, I generally tell the kids to go handle it themselves, rather than intervening over a few hurt feelings.
But let's not forget that when you package up hate and send it to another person, the individual words aren't enough to excuse the message.