Hmmm, I'm somewhere in between. I don't normally care at first about lyrics, I just hear a song and see if I like it. But then if I check the lyrics and they're awful it can really put me off.
Greg, here's a good example, take Pulling On The Boots from the Romper Stomper soundtrack, it's a great Oi! Punk song, but it's got really racist lyrics, so while it makes sense in context you wouldn't exactly want to sing along with it.
I probably wouldn't care. It's just words. Words mean nothing to me. It wouldn't be any more offensive to me than some wimpy peace love crap like "Imagine", which to me is pretty fucking repulsive.