"Tranny"

Take a look at this article on advocate.com, regarding a disagreement between Susan Sarandon and GLAAD.  Apparently, the television show Glee used the word "tranny" during an episode about The Rocky Horror Picture Show. 

GLAAD objected to the use of the word, with their spokesman, Richard Ferraro, saying, “The word 'tra**y' has become an easy punch line in popular culture and many still don't realize that using the term is hurtful, dehumanizing and associated with violence.”

Susan Sarandon feels that GLAAD is becoming "like PETA--way out of control," and insists she has friends who proudly declare themselves "trannies".

Meanwhile, Dan Savage jumped into the fray, opposing GLAAD and claiming, "There are just too many queers out there—including awesome trannies like Murray Hill here—using the word 'tranny' with humor and pride and without a moment's thought or hesitation for you guys to keep up this 'tra—y' bullsh*t."

What do you think about the word?  Is it hurtful and dehumanizing, or to be said with pride?  Or does it depend solely on the intent behind the usage?  Share your thoughts in the comments.