Are you under the impression that it is perceived as having no racial issues?
People are regularly fired all over the country for less than what happened at the U. He wasn't quoting Mark Twain, he wasn't quoting a legal opinion, etc.; he was calling a teenager the word, in connection with his work as a state employee. Would any other state employee get to keep a job paying hundreds of thousands of dollars a year after that? Whether you think it's reasonable or not, he clearly got off easier than he would have virtually anywhere else in the country.
Duquesne professor fired for using it in pedagogical setting:
SJU professor fired for quoting Twain:
Central Michigan professor fired for quoting an appellate opinion of the court:
A single use of the slur can be enough for the victim to establish a hostile environment claim: