Are you re-writing history again? There was a huge controversy. Some radio stations played an edit that didn't include the verse that had those lyrics. Knopfler got death threats. There were threatend boycotts of Dire Straits concerts. MTV put out a statement defending "artists rights" if I recall correctly.
Hmmn don't remember that being a huge deal. I know they released an "edited cut" striking the lyrics.

And not to defend Knopfler, but the song was written from a point of view....
And if you read my post I said he overheard some guys at an
Appliance shop come up with those lines.

Is it so hard to check your facts?  Or does your memory actually conform itself to only those items that allow you to defend your POV?  Down here in Texas boy, we did not have radio stations boycotting, no picketing in the streets. I think you may be referring to the reaction in Maine or San Francisco.  And to think the song went to #1 anyway. So you can defend your POV in your own mind, which is where your facts are anyway.

The point is the outcry was marginal. Today it would headline for 3 days.
Page 1. Mark Knopfler uses the word FAG
Page 4: 3 Americans contractors beheaded while working  in Iraq..