Trying to find common ground here
The analogy aside... You do recognize that whether or not it is offensive is a matter of perception for each person -- and that they must make that judgement for themselves. Nothing is inherently offensive. For these kids it may not have had an offensive meaning. For about 99% of people it does. Does that mean it's right or wrong? That's a judgement each individual has to make for themselves.
Because of that I think that it is up to the organization that they belong to and other organizations and individuals that they associate with (or those they may not) to dictate what course of action should be taken in response to their idiocy. Not a governmental institution in any way, shape or form.