Bad mouth needs chilli pepper?

Well, you know all that history before us, that our mothers and their mothers etc, were telling us, that if you say "bad" words you will eat the "chilli" pepper. My mother of course, only said that, never had to make us eat it. Well, my brother almost ate it once. But, I come now to realise that it isn't the kid's fault saying "bad" words. We had for the weekend my dear Aunt Maritsa. She has a really "bad" mouth. She tries around my son and my nephew to keep it calm, but "bad" words always slip out of her tongue. Yesterday evening, as I was saying to my son Angel to do something for me, he actually used one of the "bad" words that my Aunt had used during a discussion she had to my mother. I said to him of course that "bad" words are not to be used, neither from kids nor from adults. But my mother said "why don't you give him a chilli pepper?". Thank God, my Aunt had realised what she had created and she said "let him be. it isn't his fault. if he hears adults saying all that stuff, what do you expect?"
I think Aunt is right. People have to pay attention to the existance of a kid in a house. Do you really think that I made a big deal of it, or you think that the way I react is normal? Do you like your child behave like an adult?