Let's define humiliation in terms of a sexual nature. You can draw your own conclusions from this.
According to wikipedia.org:
Erotic humiliation is the consensual use of psychological humiliation in a sexual context, whereby one person gains arousal or erotic excitement from the mixed and powerful emotions of being humiliated and demeaned. The humiliation need not be sexual in itself, as with many other sexual activities it is the feelings derived from it which are sought, regardless of the nature of the actual activity. It can be verbal or physical, and can be relatively private or public. Often it can become ritualized, and unlike some sexual variations it can also be easily carried out over a long distance or online. The distinction between humiliation and dominance in an activity such as erotic spanking is that the sought after effect is primarily the humiliation, the activity is just a means to that end.
Whilst mild or moderate humiliation is not an uncommon part of BDSM or other sexual roleplay, humiliation play can be taken to a point where it becomes considered edgeplay by most people, either due to its extreme nature or due to the controversial views on its psychological impact. As such it is a highly subjective issue, and depends greatly on context.
Humiliation in general touches strong emotional buttons, the more so when it becomes sexualized. Because of this, consent and paradoxically a high degree of awareness is needed, to ensure that the result is desirable rather than abusive. For example, a submissive may enjoy being insulted in some ways, but genuinely crushed and devastated if humiliated or insulted in other ways, especially by an insensitive top.
Humiliation play is also connected to sexual fetishism, in that non-sexual activities may become sexualized by association with arousal, and also may be associated with exhibitionism in the sense of wanting others to witness (or being aroused by others witnessing) ones sexual degradation.
For some people, activities such as name-calling are a way of achieving ego reduction or getting over sexual inhibitions. For example, between gay people, terms usually associated with homophobia may be used, such as "faggot".
As with all sexual activities, some people have sexual fantasies about humiliation, and others actually undertake it as a lifestyle or in a scene. Sexual fantasies of humiliation are very common, but for most people remain a fantasy - they would have strong reservations about it being public, or engaged in with a partner for real, however erotic the idea may be. Others do explore humiliation with partners, and many people use online humiliation (where the humiliator and others are involved via the internet using chat, email, websites etc) as a compromize between exhibitionism and reality on the one hand, and safety and anonymity on the other.