For the most part, I agree with Sigil. Let me see if I can come at it from a different angle, though.
Like it or not, there are connotations to words. Let's take that to its logical end (understand that I do not agree with the use of the words I'm about to throw out, it's for illustation, and I'll edit myself). That means that you don't object to f----t as opposed to gay or queer. Or n----r instead of black or African-American. Or ch--k for Chinese, etc. They are just words, after all.
Maybe saying that Sigil and I have a stupid position is as good as saying that or position is unreasonable or prudish.
Anyway, that should illustrate the connotations of words.
Should they be used? There's usually a better altenative in daily life, but they are. Personally, I'm a _lot_ more offended by cursing (which I consider blasphemous) than cussing (which is simply rude). Still, people do both.
Writers have every right to use whatever words they want in their works. Tolkien's "Lord of the Rings" doesn't miss them, nor do Brooks' "Shanara" books, Duncan's "A Man of His Word", or Jordan's "Wheel of Time".
I've never read any of Martin's works, but I love Rosenberg's "Guardians of the Flame" and that would seem... odd without the harsh language. On the other hand, Lumley's Necroscope series kept the first couple of books clean and throwing in the (minor) bad language added nothing to the darkness, in fact it was almost jarring when it did happen.
Still, the real question is whether Dragon should be printing these words. I don't think so. The magazine has traditionally been geared toward an "all ages" audience. Some teens are mature enough for the language to be a non-issue, some aren't. Regardless, the language doesn't belong in Dragon.
Honestly, I don't have a problem with one word every great while, that's not a rating breaker. My concern is that it becomes something like a slippery slope, just as TV did. The language (among other things) that is used on TV today is really, really sad. I would not read a publication that used the language that TV does. If once a year or so, Dragon slips in a cuss word, I'm not going to stop buying it. Of course, I may not hold it in as high regard.
What's my solution? Easy. I really would rather not see fiction in Dragon, anyway, especially as a regular feature. There is absolutely no reason to have vulgar language in Dragon anywhere outside of the fiction, so problem solved.
Note: I could see a case for fiction in Dragon, but I think it should be handled as an ad. Make the book's publisher/author/whatever pay to put the excerpt in the magazine. I can tell you, in my case, the page-count would be better served by putting an ad in than fiction. Both are non-value-added material and at least I look at the ads.