Hmm, I don't remember anything like that happening around issue 307 (Westeros and George RR Martin Exclusive), but I'm not surprised after the venom that accompanied my 15 minutes of fame. (Perhaps that is was Sigil IS referring to.)
The issue for THAT was #275 (2000 - September?), the one with the orc paladin and the nice big blazing words "Warriors Kick A--" with the real word in place, of course. I asked on the Wizards messageboards the question "was it REALLY necessary to use that word on the cover?" My main point of issue was its placement on the front. My kids were becoming interested in roleplaying, but that issue never made it to their hands. In fact, that issue never saw the light of day after coming in from the mailbox since previous issues had already rocked the boat with associates from other spheres of life. I wanted Dragon to keep the higher standard rather than even starting down the slippery slope. Now, I don't enjoy reading it either insde the magazine or anywhere else for that matter, but can understand its use if used for story ... artistry? ... purposes at appropriate, intense times.
Still, from the overwhelming outraged response on that board to my question/suggestions you would have thought I was a condemning, right-wing fundamentalist, repressive, totalitarian, red-necked, prudish, censuring bigot. I can assure you, I'm only half of those things - or less, depending on who you talk to.
They put my original post in a magazine one or two issues after that, along with a couple of the "refutations" and what I remember as a rather ambiguous response on their part (but perhaps I'm repressing). It hadn't happened again as far as I can remember, although there do seem to have been more instances of courser language showing up inside recently - and seems like some back cover ads have been questionable in this regard too?
IIRC, they said they were trying to target teens at that particular time, and it wasn't anything they haven't heard before. True, but does that make it right? Draw them up with wit and intelligence rather then wallowing in the sludge with them! But teens generally don't have the cash to shell out like 20 and 30-somethings that are the main financial backbone of the industry (my impressions).
I did suggest a follow-up if that's what they really wanted to do. Something like placing a Dire Wolf defending her pups in a den and laying big words across it "What a B----!" Technically true, but OH so offensive! (Even if you can hear THAT word on TV frequently enough these days.) I'm just glad they didn't take me up on it, and haven't tried the trick again since.
Now that I've said that you just watch. In the next couple of issues....
OK - enough diatribe! I know I went from being informative as originally planned to either boring some or risking another war beginning on the subject. (NOT my intent - just reliving and sharing. Honest!)