Im dont think 'political correctness' comes into the equation here..yeh ok we can sometimes be stiffled by it..and I still stand by what I have always said that in some cases 'PC' and the administrators (commonly known as 'they) of it add fuel to the fire by putting certain groups..or attempting to put certain groups on a pedestal..
But calling someone a 'rag head' is by a mile, offensive..lool at the term itself, break it up.. 'rag' implying they use dirty bit of cloth from the street..
Maybe if they were referred to as cotton, satin or linen heads it wouldnt be deemed as so offensive.
I think its more of an offensive slur as opposed to a racist one, either way you just aint going to get away with it these days and especially when your heir to the throne.