Think about it. John and Yoko made "Woman Is The N****r of the World", and were they strongarmed into censoring it? No.
Eminem and a bunch of other rappers constantly threw around words like "F****t" in their songs well into the 2010s.
So why was Michael singled out, when TDCAU was explicitly making a point against discrimination?
As someone who is half-Irish, half-American, and a citizen of both countries, I strongly suspect that if he had said "kick me, mick me" ("mick" being a slur for the Irish) instead, there would not have been nearly the level of controversy that there was, and he wouldn't have been strongarmed into changing it, despite the fact that the Irish and the Jewish are both white Westerners who have suffered from genocide (Great Famine, Cromwell, Holocaust) and persecution (in fact, both groups were not legally emancipated in Europe well into the 19th century). It's the double standard that really irritates me.
Anyone who bothered to actually read the lyrics would understand that Michael, a black man, was denouncing prejudice, the same way Bob Dylan, a Jewish man, denounced prejudice in the song "Hurricane", which used the word "n****r". You have here an exact parallel...a black man using a derogatory term for Jewish to denounce prejudice and a Jewish man using a derogatory term for black to denounce prejudice, yet only one of them was intentionally taken out of context.