I'm not talking about the fact that YouTube won't ban the guy. I suspect that at some point, they will figure it out and ban the username, because it is offensive.
I'm saying that both of those words, used for any reason (except as verbatim quotes in, say, a news story, or in appropriate context in a work of fiction or art meant to convey their use), are in and of themselves offensive to the vast majority of readers. Yes, the person is a troll. But clicking on the report button isn't attempting to interact with the person. It's entirely passive, wastes zero of my time, and doesn't give them the personal feeling of engagement and power that trolls seek. It's actually the other way around - we take a non-direct method of intervention.
Now, if I was writing huge posts on YouTube to argue against the guy's username, then I am feeding a troll, but reporting something clearly isn't troll-feeding. I guess my thought is that I'm not personally offended or affected by the guy's name, but imagine if you were a black gay fellow who had recently suffered some form of racist or homophobic discrimination? That's gonna make that person react and feel. Should we tell that fellow that their reaction is inappropriate because it's feeding a troll?
I'm sorry, I just don't get the mindset that it's my job to not be offended by someone's words, rather than the speaker's job to be aware of what their words actually mean in the context of our times.