I always liken "******" to "mother fucker". Neither should be used lightly, as they convey the intent to insult someone. So, we have these words at our disposal to insult people. And there are lots of them. "Dirty Jew" is a phrase that gets you into trouble in a lot of places but here, you are free to call the dirty Jews, dirty Jews. And we have at least one, GHook, who advocates Jews spitting in my face after taking my money, just because I have the nerve to speak to the issue. What a dirty Jew.
I haven't actually run across any ******* here but if I do, and they behave like *******, I think it's more than OK to refer to them as *******. I know what it means, I know it is offensive and I won't use it unless I absolutely intend to offend you. And come to think of it, aren't dirty Jews just ******* anyway?