As I have heard the term used on TV by political pundits, "teabagger" is not derogatory but merely a reference to those of the Tea Party. (I don't go to Wikipedia to learn about the language.) I remain unaware of any sexual connotation of the term, but if you are, I'll accept that.
What irks me is that we consider words in and of themselves offensive. Certainly the scatological and certain epithets are to be avoided, but to some, Indian may be offensive. Alas, we are becoming hyper-sensitive, vying to see who can be more "aware" of what may or may not offend someone. Words are, with very few exceptions, not to be expurgated when used per se. We define words and use them in crosswords as objective symbols for meaning, and as such they should not be made taboo because they can be used improperly. Dictionaries do not eliminate words on that basis and neither should cruciverbalists.