Is the word Goy offensive?

I have no idea how my simple funny picture making fun of global warming became an all out debate over whether the usage of the term Goy to refer to non-Jews is offensive or not. Since I would rather have the whole populace involved and in order to entertain you fine folks sitting in your cubicles- I decided to make a special post to give you the floor to battle it out.

I find the word Goy to be quite nasty and refrain from using it, however the term “goyishe” is used since its a hard to word to find such a yiddisher sounding replacement.

Is the word Goy offensive?