Here's the complex part. Different parents seem to have totally different ideas about what is inappropriate as far as language goes. Like I am not bothered by the word "ass" particularly. It's a body part, and not that big of an issue as far as language goes. But, OTOH, sexist language like "slut" or the B word I can't stand and would never use around my kids. And of course I would never tolerate any language that was racist or homophobic or anything along those lines.
I've known parents who banned words like "hate" in their houses, and also who don't allow words like "drat" and "gosh" because they're stand-ins for curse words. I have no problem with the word "hate," although I do redirect my kids to other language when it's used about people. "Hate is a strong feeling to have for a person. Maybe you just don't get along with her?"
We aren't religious people, however, I teach my kids not to use religious curse words because I feel like it's more respectful around religious people to not use that language. I am not concerned about "gosh" or "drat" though.
So I think this is a complex issue and I'm really curious about where other people stand on it.