I think it's always reasonable to report bigots playing stupid bigot games. The fact that the Steam Group had to delete every discussion and completely lock their discussion area to maintain compliance with Steam's policies seems to indicate those reports were warranted.

Racist and sexist remarks are never appropriate. Do you have specific examples you are concerned about? Or are you going to give me some vague "they are the ones saying racist things!!1!" Nonsense with nothing to back it up?