Our domain registration services are provided under the auspices of a third-party company, Public Domain Registry. They are required by the various top-level domain registries and ICANN to impose various conditions on registration.
The enforceability of their agreement is strictly limited to your use of their domain registration service, not to your use of our hosting services (which are governed by our Terms and Conditions of Service). Public Domain Registry has no authority or ability to interfere with your NearlyFreeSpeech.NET hosting services. No matter what happens, their sole remedy would be refusal to process your domain registration.
If you register a domain with an offensive or controversial component, you are at a certain level of risk of having your domain canceled, but typically not from Public Domain Registry. Each top-level domain registry has different rules for what domain names they will allow, and no matter what registrar you choose, you will always be subject to those rules.
If this is a concern to you, do not register a domain name (anywhere) containing an offensive or controversial component.