The problem with these token activism is that it's hollow in content. The intent might be good, but the action is almost pure virtue signalling.

Slavoj Zizek pointed out in multiple interviews that there's a pervert self-reflectiveness in the self-censorship: privileged people "enjoy" being guilty of their privilege, so it's more about themselves rather than the people they claim to represent. "Sorry, but you were naive and unaware of people being racist when they use these words, so let me stop them and now you are protected (by me) in an inclusive atmosphere."

A related radical freedom situation as an inverse to the above is that when friends get really close, even using racist slurs is treated as a gesture of intimacy, rather than racism. In an ideal world, the context in the public discourse would be so strong that even racist words lose their racist meaning ("oh, so you are joking as well") rather than the opposite (assuming there's ubiquitous "hidden" racism in the use of a word, even when there's clearly none).

Another critique is that it presents itself as a substitute of real solutions. Instead of addressing real problems, it provides a simple "everyday" solution, very much similar to the recycling movement. Of course we need to recycle, but we should be aware that it's not a substitute of radical real actions (e.g. stopping the big oil).