I think the thing for me here is that the dictionary inclusion is not a value driven decision. There are loads of (potentially) offensive words in the English dictionary. Inclusion is based on usage, and 'yid' was already in there anyway. This reflects an additional usage/definition that, in truth, has been going on for some time. Whether any of us like it or not (or don't care either way) doesn't alter that. It doesn't legitimise its use, just acknowledges it exists.