If DU is actually afraid of the law, filtering a single word won't help him.
He's only bound to the law because he chooses to.
I have to defend DU here and point out that this was implemented not because he wanted it
Same here.
It's fucking simple. Transfer the site's server and the domain name to a moderator or team member from the US, or form an LLC. You're not bound to the Australian law unless you specifically decide to. The job got slightly harder, but you're spending effort on the word filter that could be spent on actually solving the problem.
Remember, this isn't our (DU's) decision.
Taking an easy decision to cover your own ass after over a decade of running the site for free is one thing, even though it should be thoroughly mocked. But you take the prize for simping and rationalizing all this bullshit.