It says the student initially wanted everyone to drop it. She wasn't offended, other people were offended on her behalf.
Okay? First of all, the student who wanted everyone to "drop it" was the girl who got "Most likely to blend in with white people," not the terrorist award. The girl who did get the terrorist award said she was not comfortable with receiving it, nor being in the same room as the teacher.
But for the sake of argument, let's focus on the first girl. Why would she want everyone to "drop it?" Answer: Because she was embarrassed and likely didn't feel comfortable with making a big scene; it's a common feeling 7th-graders have. That
does not mean she is actually okay with the award, nor does it give the teacher free pass to distribute this award.
Honestly, this argument smacks of the "It's not rape if they enjoyed it!" argument.
No, the teacher should have been fired for making these awards, just like anyone should be fired for practicing workplace discrimination. Doubly so since the teacher has apparently did racially insensitive actions before (i.e. the "black quiz").
And how are you certain these "awards" would have no impact on the students' lives? These are impressionable middle schoolers we are talking about. These students are at the age when they begin to form their adult identities, when they form new social norms, etc. These "awards" will be a pretty defining feature of these students lives. Perhaps it will become their go-to answer to the question "What's the worst racist experience you had in your life?"