How on earth can the shortening/nickname of one's national identity be offensive? As a Brit I find this, so called insincere PC, by the press all so much dire crap!
That's a little naive - Paki is used all the time by racist scum, with venom, to describe anyone who looks Asian. What the press
are manipulating is the context, knowing full well that the military are merciless in taking the piss of each other by exploiting individual differences, but releasing the story to shock (ie. sell papers), by implying Harry is somehow racist. The majority of free-thinking people will recognise it for what it is - Harry simply fitting in, in a banter-fuelled environment - for the rest it'll simply reinforce their already entrenched opinions of ruling class racism. In the mean time the Establishment have to respond with 'official horror'.
Next month they'll run a story about out-of-touch Royals, failing to relate to the common man.