If he caught it and appoligied profusely immediately and didn't intend to use the word in the first place, I think the station over-reacted.
This guy doesn't sound like the type that would use the word on purpose, or he wouldn't have reacted as he did.
I don't know the guy. Perhaps this plays into other things he's done. I just don't know. If this is it, and he's an otherwise good host, I'd let him come back and chalk it up to an inadvertent error and a misunderstanding.
Agree 100%.
Politically correct world is not a good world to live in for anyone....