Anyway, I think that there have to be some limits to what constitutes freedom of speech and expression. How is this defined, and who does the defining? 'Society' is the short answer, and 'law-makers' is the longer answer. What's the definitive answer? There isn't one, I think, and 'round and 'round it will go.
As soon as you say this, you've effectively killed free speech. Free societies involve a couple of freedoms that nobody likes to talk about. One is the freedom to offend and be offended. The other is the freedom to be stupid and to do stupid things, like refuse to wear a seatbelt.
I happen to think the world tour t-shirt IS funny, but for the gentleman in question, he was unable to see the joke in light of his own experience. You, being the kind of person you are, may not wish to further offend a veteran in this way, and may voluntarily choose not to wear the shirt again. However, where does that give you the right to take away MY expression of MY sense of humour, if I don't give a damn who I offend...?
I'm not saying that this is necessarily a good thing. I'm simply saying that freedom of expression is an all or nothing proposition. Also, under freedom of expression, you are free to censure (not censor) those who do things which are not in line with your personal belief system. Tell the young puke he's being rude, uncultured, etc. Refuse to have anything to do with him...well and good. But you can't forbid his opinions or sense of humour.
So in a free society, you can be offended by portrayals of Donald Duck (who never wears any pants, and is destroying the moral fibre of our nation thereby), but you don't have a right to demand that he be expunged from popular culture, or to sue as a result. Being free to choose what offends you is part of living in a free country. However, in a free country, you can still protest, complain, write letters and organise your neighbours to expunge this pantsless symbol of EEEVIL from society...
Since when is there a freedom not to be offended? And if there is, then why am I only allowed to be offended by certain things? Why is being offended by Nazi propaganda somehow different than being offended by forced racial integration if you happen to be a Nazi?
I've always believed that those who advocate censorship for "hate speech" etc. are actually doing harm to the cause they propose to support. If the government can censor certain types of speech, it allows the population to get used to the fact that the government somehow has the right to do this. Then, when everyone is used to that, there will always be "just one more thing". Soon, the government can tell you that your religion or belief system needs censorship, and maybe you shouldn't be allowed that religion...and then you can demonize those who do things the government won't permit, and then if some thugs wreck the homes and shops of those who are doing those outlawed things, then maybe that's OK too....
The best way to combat poor ideas and beliefs is to use better ideas and facts which blatantly contradict poor ideas. Spend some time at http://www.remember.org and see how convincing racist web sites are after that. Consider the level of education of the people involved (on both sides of an argument), the facts and ideas presented, and evaluate their ideas on their merits. You'll soon find out who the idiots are.
Note that while you are free to be offended, or to believe anything you wish, you are not free to contravene the law. Thus, you can hate racists, or you can hate (insert minority here), but you can't go and burn down their houses, our counsel people to do so. That's arson, or fomenting insurrection, and you've left the realm of freedom of *speech* when you go down that route.