Allen has put her foot in her exceptionally large mouth.
The "Smile" star was quoting directly from the image that Gay Times Magazine used to publicize her latest musical endeavor. For many fans on Twitter, the word was inappropriate in any context, and they took to tweeting their dissatisfaction directly at Allen, resulting in her removing the tweet.
There comes a point where we have to start to differentiate between good and bad intentions. Whilst Lily's use of the word was undoubtedly unacceptable (I full-body cringed upon reading it), she's been an excellent ally to the LGBT+ community and is currently raising important political questions and supporting the idea of equality for all. Although it seems like a given that she should apologize (at the end of the day a slur is a slur), it feels somewhat like the LGBT+ community has bigger fish to fry right now.
Check out the video that started it all - Lily Allen's politically charged cover of "Going To A Town":
Lily Allen has yet to comment.