Rappers say racist, homophobic and generally stupid shit to get a rise out of opponents and audience. Their defense is that they're not racist, and that they make up new definitions for words.
Many respectable rappers appreciate KOTD, however if these battles reached a wider audience, KOTD would probably have a lot more haters.
Rapper 1: Flirt Bag Master Hand
Organik: Rapper to my left, introduce yoursef
Rapper 2: Rape Joke Steven
Organik: (flips a coin and rapping begins)
Rapper 1: omg you are such a faggot
Audience: WOOOOOOOOAH LAUGH CHEER
move over your you might get shot, blah blah blah blah blah, K.O.T.D.