I THINK they don't mean that "down low" is itself offensive, I THINK they are just trying to explain that "men who secretly have sex with men" is what Hughley meant by "on the down low" in the offending quote. Because what he says is not immediately clear.
A better way of saying it would have been, "...communicated misinformation about the spread of AIDS, placing blame on men who have sex with men but publicly identify as heterosexual, which Hughley referred to as 'on the down low'."
ETA: Hmm, I read a little further...Shepherd went one step further and said, "Down low is black men who've been going out." In that regard, that's a pretty sh*tty use of the term "down low" and is rightfully pointed out. I don't think the phrase was PREVIOUSLY offensive, but if Sheperd wants to define it that way, then yeah, that use of it is offensive.
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