A little part of me thinks she might still go ahead with it anyway. I mean, she was planning to go on tour with Kanye in 2009 even though he's used that word before. But it would seem very hypocritical of her to, so I think she shouldn't, and probably won't hopefully.
I don't see why it's a big deal. Most of us call somebody a *** at least once a day on ATRL. And Azealia has made it clear that she supports gay people.