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In fact - as I write this it occurs to me that you're practicing PC right now. Obviously one of the many elements of Political Correctness is declaring that certain words and phrases are no longer acceptable and off-limits because they "may offend someone", and we end up having to change them to suit you, which is about as silly as it gets. "Midget" to "dwarf", "secretary" to "receptionist", "fat" to "calorically challenged". What should we change "Politically Correct" to so that you're not offended?
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We don't change the language to not offend someone. We change it to be more accurate.
To take your above examples. Both "Midget" and "Dwarf" are considered offensive terms, the proper term today is "Little Person". The language was changed to emphasize the humanity of the person being described, something labels take away.
The same thing with "Secretary" vs. "Receptionist". The term was changed to emphasize the professionalism of the person doing the job. Secretary as a word implies some golddigger who is making a play for a professional married man. That's the stereotype we have. Receptionist implies a professional with multiple skills who is a key player in a professional office.
Nobody uses the term "calorically challenged" to describe an overweight person, except in humorous fashion.
It strikes me that what you call "Political Correctness" most people would consider common decency. Using an accurate label to describe something rather than a word to demean someone.
Now how does this all fold back to Phil and his bigotry?
Well, Phil subscribes to an old view of homosexuality that it is a "sin" (although he really can't demonstrate who it hurts, just that it offends his sky friend) and he really thinks it's a choice that he can't understand.
Reality- Science has concluded that sexual orientation is not a choice, which is why they took homosexuality off the list of psychological disorders decades ago.