Actually, it does. My friends jokingly call me negative gay words sometimes. They HAVE been reported for it by other people, but because it’s just friends smack talking or bantering, it is not seen as a violation.
And to even up that statement. Blizzard is one of the founders of the Fair-Play alliance, who even calls out specifically that banter or smack talking among friends is NOT the same as actually insulting or disrespecting some one.
I’ll resolve the tension then and just reveal that it is, indeed, the relevant ToS passage.
What’s that? 
The fair play alliance is a group of gaming companies that are working together to make games more social and less disruptive. Smack talking and banter among friends or communities, is specifically called out as something that SHOULD be acceptable, as most gamers enjoy it, while it is not actually disrespect at all.
I sadly enough can not post the link to it, but if you smack fair + play + alliance in google, you get there on your first hit.
Thank you for answering.
Carrying on with my point then, if these rules are to apply IC, then every character with anything negative about them would be subject to OOC penalties. Say anything upsetting in an IC context and it could land you with punishment OOC.
However, the way I read those rules: “how you express yourself”
Roleplay isn’t an expression of one’s self. It is an expression of a character you are telling the story for.
“Threatening or harassing another player”: Interactions IC are not direct interactions with a player, as established by the commonly accepted rule of: “IC is IC and OOC is OOC”.
So I unless it was outright targeted harassment with a character effectively meta gaming to cause offense to the opposite player (which is generally unacceptable anyway), I am not sure how they can make these rules stick for IC discussion.
That’s pretty cool. Thank you, I’ll have a read!
The passage most relevant to homophobia in rp is the sentence before that though (“Hate speech and discriminatory language is inappropriate, as is any obscene or disruptive language.”). In it there is no distinction made between targetting it at a player or a character.
Roleplay is always a form of self-expression as the character’s expression comes from you.
But if really used completely without alteration for IC-Roleplay-context…this means that there is no possibility of fight or conflict-roleplay. Because that would always violate the ToS. (“Open relationship play” could be seen as opbscene by some also)
So i think that GMs will make a distiniction here, but I don’t have proof.
Sorry for Off-Topic 
ERP is pretty obscene. And trust me, if you don’t know about it and get caught in the middle of it (I walked into Goldshire inn at some point, when I didn’t know better…) it will be extremely dsruptive.
No one gets banned for it though, as RP doesn’t get hold to the same ToS standards as the rest of the game. Which, also, I think is the right call… Otherwise, most RP would be in violation, in one form or the other. xD
its not just about intent but also what words you use
homophobia, blatant racism between humans based on skin color and a tyrade of swear words that some buffoon chose to copy from a peaky blinders episode not only not have any canon lore basis, they are also still part of the same communication channel thats subject to the same moderation on RP realms as they are anywhere else. If I run in circles in cathedral square saying in /s that all x-colored humans should be enslaved the effect this may have on the players behind their toons will more than likely be the same as if I did that on a public discord channel
we arent paid actors who get a pass on portraying certain mindsets and characters and are not contractually obligated to do it, we are players on a platform where our interactions are meant to be moderated
people using an accent when writing words is actually a bannable offence too because they avoid the ingame maturity filter and the end result is the same whether youre typing IC or OOC. In an ideal world this might be passable, but in Warcraft’s case this is backed up by both canon lore as well as the game’s chat moderation rules. The sole reason blizzard doesnt crack down on every violation is because theres so many of them and a lot of RPers type to reflect IC accents which makes scouring these chatlogs a nightmare
I admit, a character will take traits from yourself and be shown in game. But it is not a direct comparison. I say this with characters with flaws that I myself do not have.
And regarding hate speech, in what context is then applied?
Some of my elves are overtly racist. Should I be penalized OOC because my elf finds themself superior to trolls? I mean, racism is bad OOC. But how far do we apply these rules? Or how far would blizzard.
The same can be said for any generally unpleasant characters. Hate speech could be one character making fun of another’s appearance. Do we penalize that?
My point relating to this thread is this:
Do I think people should be targeted and harrassed OOC because of their sexuallity? No.
Do I think we all should enjoy the game under a consistent application of the rules and take what is said in an IC context with a grain of salt? Yes.
A good alternative, is act smug or Just show some distaste thought emotes, dont need to use obscene words.
I agree for the most part and think I covered your point with one of my specifications.
If somebody is stretching the reach of their character into material they wouldn’t really have access too in order to cause offense, I could see that being taken as meta and thus, more targetted towards OOC.
My elves don’t use obscene words anyway (for the most part) because it would go against their teachings of class and dignity.
And how would this be OK for racism, but not for homophobia?
Double standards much?
Again, there is no homophobia in Wow so I dont see the need of invent it.
Edit: Ignore the lvl 10 poster and lets keep the discussions on track.
I once made a thread on this particular topic already and got a wealth of responses:
And as for a more direct example, my human warlock absolutely hates every race that are currently members of the Horde as he has a long history of being betrayed, attacked and invaded by them, leaving nothing else (quite literally as his entire household, everyone who was dear to him and the kingdom he hails from got wiped out in the many wars between the Horde and the Alliance) than his hatred and an investment in the Alliance military to constantly beat the Horde back and down until they cease for exist. He will freely smacktalk and use derogatory words (fitting the setting) when dealing with any Orc, Tauren, TRoll etc.
meanwhile I also have Horde characters who either despise the Alliance and/or humans on an equal level or ar indifferent. I am yet to get reported for my characters’ conduct though.
Remember to put the pandarens/Lilynore troll alt on kignore and keep the attention on the topic! Dont engage with it.
Specism(Not our type of racism) between fantasy races is entierly a thing in the setting.
Homophobia isnt, plus its also forbidden by the ToS. That enough should be the end of it tbh.
Ok, report the derailer, and if this thread gets locked, I will make a third one and will link your opinions on the actual theme in it.